Intrinsic value of Turquoise Hill Resources Ltd. - TRQ

Previous Close

$4.31

  Intrinsic Value

$1.48

stock screener

  Rating & Target

str. sell

-66%

Previous close

$4.31

 
Intrinsic value

$1.48

 
Up/down potential

-66%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of TRQ stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -26.39
  9.20
  8.78
  8.40
  8.06
  7.76
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.34
  5.30
  5.27
  5.24
  5.22
  5.20
Revenue, $m
  1,626
  1,776
  1,931
  2,094
  2,263
  2,438
  2,620
  2,810
  3,007
  3,212
  3,424
  3,646
  3,876
  4,116
  4,366
  4,626
  4,897
  5,180
  5,475
  5,784
  6,106
  6,442
  6,794
  7,162
  7,546
  7,949
  8,370
  8,812
  9,274
  9,758
  10,265
Variable operating expenses, $m
 
  1,270
  1,381
  1,497
  1,618
  1,743
  1,874
  2,009
  2,150
  2,296
  2,448
  2,607
  2,771
  2,943
  3,121
  3,307
  3,501
  3,704
  3,915
  4,135
  4,366
  4,606
  4,858
  5,121
  5,396
  5,684
  5,985
  6,300
  6,631
  6,977
  7,340
Fixed operating expenses, $m
 
  456
  468
  479
  491
  503
  516
  529
  542
  556
  570
  584
  598
  613
  629
  644
  661
  677
  694
  711
  729
  747
  766
  785
  805
  825
  846
  867
  888
  911
  933
Total operating expenses, $m
  1,597
  1,726
  1,849
  1,976
  2,109
  2,246
  2,390
  2,538
  2,692
  2,852
  3,018
  3,191
  3,369
  3,556
  3,750
  3,951
  4,162
  4,381
  4,609
  4,846
  5,095
  5,353
  5,624
  5,906
  6,201
  6,509
  6,831
  7,167
  7,519
  7,888
  8,273
Operating income, $m
  28
  50
  83
  118
  154
  191
  231
  272
  315
  360
  406
  455
  506
  560
  615
  674
  735
  799
  866
  937
  1,011
  1,089
  1,170
  1,256
  1,346
  1,440
  1,540
  1,645
  1,755
  1,870
  1,992
EBITDA, $m
  522
  590
  670
  754
  842
  933
  1,028
  1,126
  1,229
  1,336
  1,448
  1,564
  1,685
  1,811
  1,943
  2,081
  2,224
  2,375
  2,532
  2,696
  2,868
  3,048
  3,236
  3,434
  3,641
  3,858
  4,086
  4,325
  4,575
  4,838
  5,114
Interest expense (income), $m
  160
  319
  345
  373
  401
  431
  462
  494
  528
  563
  599
  637
  676
  716
  759
  803
  849
  897
  947
  999
  1,054
  1,110
  1,170
  1,232
  1,297
  1,365
  1,436
  1,511
  1,589
  1,670
  1,756
Earnings before tax, $m
  -5
  -269
  -262
  -255
  -248
  -240
  -231
  -223
  -213
  -203
  -193
  -181
  -169
  -157
  -143
  -129
  -114
  -98
  -80
  -62
  -43
  -22
  0
  24
  49
  75
  104
  134
  166
  200
  236
Tax expense, $m
  -149
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  6
  13
  20
  28
  36
  45
  54
  64
Net income, $m
  285
  -269
  -262
  -255
  -248
  -240
  -231
  -223
  -213
  -203
  -193
  -181
  -169
  -157
  -143
  -129
  -114
  -98
  -80
  -62
  -43
  -22
  0
  17
  36
  55
  76
  98
  121
  146
  172

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,915
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  16,835
  16,290
  17,720
  19,209
  20,758
  22,367
  24,040
  25,779
  27,586
  29,464
  31,417
  33,447
  35,561
  37,761
  40,052
  42,439
  44,928
  47,524
  50,233
  53,062
  56,016
  59,102
  62,329
  65,703
  69,233
  72,927
  76,793
  80,841
  85,081
  89,522
  94,175
Adjusted assets (=assets-cash), $m
  14,920
  16,290
  17,720
  19,209
  20,758
  22,367
  24,040
  25,779
  27,586
  29,464
  31,417
  33,447
  35,561
  37,761
  40,052
  42,439
  44,928
  47,524
  50,233
  53,062
  56,016
  59,102
  62,329
  65,703
  69,233
  72,927
  76,793
  80,841
  85,081
  89,522
  94,175
Revenue / Adjusted assets
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
  0.109
Average production assets, $m
  8,604
  9,396
  10,221
  11,080
  11,974
  12,902
  13,867
  14,870
  15,912
  16,996
  18,122
  19,293
  20,512
  21,781
  23,103
  24,480
  25,916
  27,413
  28,976
  30,607
  32,311
  34,092
  35,953
  37,900
  39,936
  42,066
  44,296
  46,631
  49,077
  51,639
  54,323
Working capital, $m
  3,288
  888
  966
  1,047
  1,131
  1,219
  1,310
  1,405
  1,503
  1,606
  1,712
  1,823
  1,938
  2,058
  2,183
  2,313
  2,449
  2,590
  2,738
  2,892
  3,053
  3,221
  3,397
  3,581
  3,773
  3,975
  4,185
  4,406
  4,637
  4,879
  5,133
Total debt, $m
  5,592
  6,054
  6,537
  7,041
  7,564
  8,108
  8,674
  9,261
  9,872
  10,507
  11,167
  11,853
  12,568
  13,311
  14,085
  14,892
  15,734
  16,611
  17,527
  18,483
  19,481
  20,525
  21,615
  22,756
  23,949
  25,197
  26,504
  27,872
  29,305
  30,806
  32,379
Total liabilities, $m
  5,044
  5,506
  5,989
  6,493
  7,016
  7,560
  8,126
  8,713
  9,324
  9,959
  10,619
  11,305
  12,020
  12,763
  13,537
  14,344
  15,186
  16,063
  16,979
  17,935
  18,933
  19,977
  21,067
  22,208
  23,401
  24,649
  25,956
  27,324
  28,757
  30,258
  31,831
Total equity, $m
  11,791
  10,784
  11,731
  12,716
  13,741
  14,807
  15,915
  17,066
  18,262
  19,505
  20,798
  22,142
  23,541
  24,997
  26,514
  28,095
  29,742
  31,461
  33,254
  35,127
  37,082
  39,126
  41,262
  43,496
  45,832
  48,278
  50,837
  53,517
  56,323
  59,263
  62,344
Total liabilities and equity, $m
  16,835
  16,290
  17,720
  19,209
  20,757
  22,367
  24,041
  25,779
  27,586
  29,464
  31,417
  33,447
  35,561
  37,760
  40,051
  42,439
  44,928
  47,524
  50,233
  53,062
  56,015
  59,103
  62,329
  65,704
  69,233
  72,927
  76,793
  80,841
  85,080
  89,521
  94,175
Debt-to-equity ratio
  0.474
  0.560
  0.560
  0.550
  0.550
  0.550
  0.550
  0.540
  0.540
  0.540
  0.540
  0.540
  0.530
  0.530
  0.530
  0.530
  0.530
  0.530
  0.530
  0.530
  0.530
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
Adjusted equity ratio
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  285
  -269
  -262
  -255
  -248
  -240
  -231
  -223
  -213
  -203
  -193
  -181
  -169
  -157
  -143
  -129
  -114
  -98
  -80
  -62
  -43
  -22
  0
  17
  36
  55
  76
  98
  121
  146
  172
Depreciation, amort., depletion, $m
  494
  540
  587
  637
  688
  742
  797
  855
  915
  977
  1,041
  1,109
  1,179
  1,252
  1,328
  1,407
  1,489
  1,575
  1,665
  1,759
  1,857
  1,959
  2,066
  2,178
  2,295
  2,418
  2,546
  2,680
  2,821
  2,968
  3,122
Funds from operations, $m
  -107
  271
  325
  382
  440
  502
  566
  632
  701
  774
  849
  927
  1,009
  1,095
  1,184
  1,278
  1,376
  1,478
  1,585
  1,697
  1,814
  1,937
  2,066
  2,195
  2,331
  2,473
  2,621
  2,778
  2,942
  3,114
  3,294
Change in working capital, $m
  -419
  75
  78
  81
  84
  88
  91
  95
  98
  102
  106
  111
  115
  120
  125
  130
  136
  141
  148
  154
  161
  168
  176
  184
  192
  201
  211
  221
  231
  242
  254
Cash from operations, $m
  312
  196
  247
  301
  356
  414
  474
  537
  603
  671
  743
  817
  894
  975
  1,060
  1,148
  1,240
  1,336
  1,437
  1,543
  1,653
  1,769
  1,891
  2,012
  2,138
  2,271
  2,411
  2,557
  2,711
  2,872
  3,041
Maintenance CAPEX, $m
  0
  -494
  -540
  -587
  -637
  -688
  -742
  -797
  -855
  -915
  -977
  -1,041
  -1,109
  -1,179
  -1,252
  -1,328
  -1,407
  -1,489
  -1,575
  -1,665
  -1,759
  -1,857
  -1,959
  -2,066
  -2,178
  -2,295
  -2,418
  -2,546
  -2,680
  -2,821
  -2,968
New CAPEX, $m
  -441
  -792
  -825
  -859
  -893
  -929
  -965
  -1,003
  -1,042
  -1,083
  -1,126
  -1,171
  -1,219
  -1,269
  -1,322
  -1,377
  -1,436
  -1,497
  -1,563
  -1,631
  -1,704
  -1,781
  -1,861
  -1,946
  -2,036
  -2,131
  -2,230
  -2,335
  -2,445
  -2,562
  -2,684
Cash from investing activities, $m
  -5,791
  -1,286
  -1,365
  -1,446
  -1,530
  -1,617
  -1,707
  -1,800
  -1,897
  -1,998
  -2,103
  -2,212
  -2,328
  -2,448
  -2,574
  -2,705
  -2,843
  -2,986
  -3,138
  -3,296
  -3,463
  -3,638
  -3,820
  -4,012
  -4,214
  -4,426
  -4,648
  -4,881
  -5,125
  -5,383
  -5,652
Free cash flow, $m
  -5,479
  -1,091
  -1,118
  -1,146
  -1,174
  -1,203
  -1,232
  -1,263
  -1,294
  -1,327
  -1,361
  -1,396
  -1,433
  -1,473
  -1,514
  -1,557
  -1,603
  -1,651
  -1,701
  -1,754
  -1,810
  -1,868
  -1,930
  -2,001
  -2,076
  -2,154
  -2,237
  -2,324
  -2,415
  -2,511
  -2,611
Issuance/(repayment) of debt, $m
  5,793
  462
  483
  503
  523
  544
  566
  588
  611
  635
  660
  686
  714
  744
  774
  807
  841
  877
  916
  956
  998
  1,043
  1,091
  1,140
  1,193
  1,248
  1,307
  1,368
  1,433
  1,501
  1,573
Issuance/(repurchase) of shares, $m
  0
  1,177
  1,209
  1,241
  1,273
  1,306
  1,339
  1,374
  1,409
  1,446
  1,485
  1,526
  1,568
  1,613
  1,660
  1,709
  1,761
  1,816
  1,874
  1,934
  1,998
  2,065
  2,136
  2,216
  2,301
  2,390
  2,484
  2,582
  2,685
  2,794
  2,908
Cash from financing (excl. dividends), $m  
  5,578
  1,639
  1,692
  1,744
  1,796
  1,850
  1,905
  1,962
  2,020
  2,081
  2,145
  2,212
  2,282
  2,357
  2,434
  2,516
  2,602
  2,693
  2,790
  2,890
  2,996
  3,108
  3,227
  3,356
  3,494
  3,638
  3,791
  3,950
  4,118
  4,295
  4,481
Total cash flow (excl. dividends), $m
  100
  548
  575
  598
  622
  647
  672
  699
  726
  755
  785
  816
  849
  884
  921
  959
  1,000
  1,043
  1,089
  1,136
  1,187
  1,240
  1,297
  1,356
  1,418
  1,484
  1,554
  1,627
  1,704
  1,785
  1,870
Retained Cash Flow (-), $m
  -287
  -1,177
  -1,209
  -1,241
  -1,273
  -1,306
  -1,339
  -1,374
  -1,409
  -1,446
  -1,485
  -1,526
  -1,568
  -1,613
  -1,660
  -1,709
  -1,761
  -1,816
  -1,874
  -1,934
  -1,998
  -2,065
  -2,136
  -2,234
  -2,337
  -2,445
  -2,559
  -2,680
  -2,807
  -2,940
  -3,080
Prev. year cash balance distribution, $m
 
  1,915
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,286
  -634
  -642
  -651
  -659
  -667
  -675
  -683
  -692
  -701
  -710
  -719
  -729
  -739
  -750
  -761
  -773
  -785
  -798
  -811
  -825
  -840
  -878
  -918
  -961
  -1,006
  -1,053
  -1,103
  -1,155
  -1,211
Discount rate, %
 
  6.00
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
PV of cash for distribution, $m
 
  1,214
  -561
  -530
  -497
  -463
  -428
  -393
  -357
  -322
  -288
  -254
  -223
  -193
  -165
  -139
  -116
  -95
  -77
  -62
  -48
  -37
  -28
  -21
  -16
  -12
  -8
  -6
  -4
  -3
  -2
Current shareholders' claim on cash, %
  100
  86.0
  74.5
  65.1
  57.3
  50.7
  45.1
  40.3
  36.2
  32.7
  29.6
  26.9
  24.5
  22.4
  20.5
  18.9
  17.4
  16.0
  14.8
  13.7
  12.7
  11.8
  11.0
  10.3
  9.6
  8.9
  8.3
  7.8
  7.3
  6.8
  6.4

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company's principal material mineral resource property. The Company's Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company's Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia's capital city, and 80 kilometers north of the Mongolia-China border. The Company's Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

FINANCIAL RATIOS  of  Turquoise Hill Resources Ltd. (TRQ)

Valuation Ratios
P/E Ratio 30.4
Price to Sales 5.3
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow 27.8
Price to Free Cash Flow -67.2
Growth Rates
Sales Growth Rate -26.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 180.9%
Cap. Spend. - 3 Yr. Gr. Rate -21.2%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 47.4%
Total Debt to Equity 47.4%
Interest Coverage 1
Management Effectiveness
Return On Assets -30.9%
Ret/ On Assets - 3 Yr. Avg. -8.9%
Return On Total Capital 2%
Ret/ On T. Cap. - 3 Yr. Avg. 2%
Return On Equity 2.4%
Return On Equity - 3 Yr. Avg. 2.2%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 28.4%
Gross Margin - 3 Yr. Avg. 32.5%
EBITDA Margin 39.9%
EBITDA Margin - 3 Yr. Avg. 33.1%
Operating Margin 1.8%
Oper. Margin - 3 Yr. Avg. 5.7%
Pre-Tax Margin -0.3%
Pre-Tax Margin - 3 Yr. Avg. 4.8%
Net Profit Margin 17.5%
Net Profit Margin - 3 Yr. Avg. 12.7%
Effective Tax Rate 2980%
Eff/ Tax Rate - 3 Yr. Avg. 969%
Payout Ratio 0%

TRQ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TRQ stock intrinsic value calculation we used $1626 million for the last fiscal year's total revenue generated by Turquoise Hill Resources Ltd.. The default revenue input number comes from 2016 income statement of Turquoise Hill Resources Ltd.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TRQ stock valuation model: a) initial revenue growth rate of 9.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6%, whose default value for TRQ is calculated based on our internal credit rating of Turquoise Hill Resources Ltd., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Turquoise Hill Resources Ltd..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TRQ stock the variable cost ratio is equal to 71.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $445 million in the base year in the intrinsic value calculation for TRQ stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.7% for Turquoise Hill Resources Ltd..

Corporate tax rate of 27% is the nominal tax rate for Turquoise Hill Resources Ltd.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TRQ stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TRQ are equal to 529.2%.

Life of production assets of 17.4 years is the average useful life of capital assets used in Turquoise Hill Resources Ltd. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TRQ is equal to 50%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $11791 million for Turquoise Hill Resources Ltd. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1997.67 million for Turquoise Hill Resources Ltd. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Turquoise Hill Resources Ltd. at the current share price and the inputted number of shares is $8.6 billion.

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Financial statements of TRQ
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