Intrinsic value of Agrium Inc. - AGU

Previous Close

$136.11

  Intrinsic Value

$73.90

stock screener

  Rating & Target

sell

-46%

Previous close

$136.11

 
Intrinsic value

$73.90

 
Up/down potential

-46%

 
Rating

sell

We calculate the intrinsic value of AGU 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

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 18.8

 

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, %
  -7.63
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  18,463
  18,832
  19,265
  19,761
  20,316
  20,932
  21,608
  22,344
  23,141
  23,999
  24,920
  25,905
  26,957
  28,076
  29,266
  30,528
  31,866
  33,282
  34,780
  36,362
  38,033
  39,796
  41,655
  43,615
  45,679
  47,854
  50,144
  52,554
  55,090
  57,758
  60,564
Variable operating expenses, $m
 
  10,201
  10,430
  10,690
  10,983
  11,307
  11,663
  12,051
  12,470
  12,922
  13,408
  13,643
  14,197
  14,787
  15,413
  16,078
  16,783
  17,529
  18,317
  19,151
  20,031
  20,959
  21,938
  22,970
  24,058
  25,203
  26,409
  27,678
  29,014
  30,419
  31,897
Fixed operating expenses, $m
 
  7,326
  7,509
  7,697
  7,889
  8,086
  8,288
  8,496
  8,708
  8,926
  9,149
  9,377
  9,612
  9,852
  10,099
  10,351
  10,610
  10,875
  11,147
  11,426
  11,711
  12,004
  12,304
  12,612
  12,927
  13,250
  13,581
  13,921
  14,269
  14,626
  14,991
Total operating expenses, $m
  16,979
  17,527
  17,939
  18,387
  18,872
  19,393
  19,951
  20,547
  21,178
  21,848
  22,557
  23,020
  23,809
  24,639
  25,512
  26,429
  27,393
  28,404
  29,464
  30,577
  31,742
  32,963
  34,242
  35,582
  36,985
  38,453
  39,990
  41,599
  43,283
  45,045
  46,888
Operating income, $m
  1,483
  1,305
  1,327
  1,374
  1,444
  1,539
  1,656
  1,798
  1,962
  2,151
  2,364
  2,884
  3,147
  3,437
  3,754
  4,099
  4,473
  4,879
  5,315
  5,786
  6,291
  6,833
  7,413
  8,033
  8,695
  9,401
  10,153
  10,954
  11,807
  12,713
  13,676
EBITDA, $m
  2,202
  2,160
  2,195
  2,256
  2,344
  2,457
  2,595
  2,759
  2,948
  3,162
  3,403
  3,670
  3,966
  4,289
  4,642
  5,025
  5,440
  5,889
  6,371
  6,889
  7,445
  8,040
  8,677
  9,356
  10,081
  10,853
  11,675
  12,549
  13,479
  14,466
  15,513
Interest expense (income), $m
  367
  322
  336
  353
  373
  394
  419
  445
  474
  505
  538
  574
  613
  654
  698
  744
  793
  846
  901
  959
  1,021
  1,087
  1,155
  1,228
  1,305
  1,385
  1,470
  1,560
  1,654
  1,753
  1,857
Earnings before tax, $m
  1,108
  983
  991
  1,020
  1,072
  1,144
  1,238
  1,353
  1,489
  1,646
  1,825
  2,310
  2,535
  2,783
  3,056
  3,355
  3,680
  4,033
  4,415
  4,826
  5,270
  5,746
  6,257
  6,805
  7,390
  8,016
  8,683
  9,395
  10,153
  10,960
  11,819
Tax expense, $m
  303
  266
  267
  275
  289
  309
  334
  365
  402
  444
  493
  624
  684
  751
  825
  906
  994
  1,089
  1,192
  1,303
  1,423
  1,551
  1,689
  1,837
  1,995
  2,164
  2,344
  2,537
  2,741
  2,959
  3,191
Net income, $m
  800
  718
  723
  745
  782
  835
  904
  987
  1,087
  1,202
  1,332
  1,686
  1,850
  2,032
  2,231
  2,449
  2,686
  2,944
  3,223
  3,523
  3,847
  4,195
  4,568
  4,967
  5,395
  5,851
  6,339
  6,858
  7,412
  8,001
  8,628

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  720
  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
  22,918
  22,635
  23,156
  23,751
  24,419
  25,159
  25,971
  26,856
  27,813
  28,845
  29,952
  31,136
  32,400
  33,745
  35,175
  36,692
  38,300
  40,002
  41,802
  43,704
  45,712
  47,831
  50,066
  52,421
  54,903
  57,517
  60,269
  63,165
  66,213
  69,420
  72,793
Adjusted assets (=assets-cash), $m
  22,198
  22,635
  23,156
  23,751
  24,419
  25,159
  25,971
  26,856
  27,813
  28,845
  29,952
  31,136
  32,400
  33,745
  35,175
  36,692
  38,300
  40,002
  41,802
  43,704
  45,712
  47,831
  50,066
  52,421
  54,903
  57,517
  60,269
  63,165
  66,213
  69,420
  72,793
Revenue / Adjusted assets
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
  0.832
Average production assets, $m
  9,694
  9,887
  10,114
  10,374
  10,666
  10,989
  11,344
  11,731
  12,149
  12,599
  13,083
  13,600
  14,152
  14,740
  15,364
  16,027
  16,730
  17,473
  18,259
  19,090
  19,967
  20,893
  21,869
  22,898
  23,982
  25,123
  26,325
  27,591
  28,922
  30,323
  31,796
Working capital, $m
  1,904
  2,185
  2,235
  2,292
  2,357
  2,428
  2,507
  2,592
  2,684
  2,784
  2,891
  3,005
  3,127
  3,257
  3,395
  3,541
  3,696
  3,861
  4,034
  4,218
  4,412
  4,616
  4,832
  5,059
  5,299
  5,551
  5,817
  6,096
  6,390
  6,700
  7,025
Total debt, $m
  6,907
  6,471
  6,796
  7,168
  7,586
  8,048
  8,556
  9,109
  9,707
  10,352
  11,044
  11,784
  12,574
  13,415
  14,308
  15,257
  16,262
  17,326
  18,451
  19,639
  20,894
  22,219
  23,615
  25,087
  26,638
  28,272
  29,992
  31,802
  33,707
  35,712
  37,820
Total liabilities, $m
  14,584
  14,147
  14,472
  14,844
  15,262
  15,724
  16,232
  16,785
  17,383
  18,028
  18,720
  19,460
  20,250
  21,091
  21,984
  22,933
  23,938
  25,002
  26,127
  27,315
  28,570
  29,895
  31,291
  32,763
  34,314
  35,948
  37,668
  39,478
  41,383
  43,388
  45,496
Total equity, $m
  8,335
  8,488
  8,683
  8,906
  9,157
  9,435
  9,739
  10,071
  10,430
  10,817
  11,232
  11,676
  12,150
  12,654
  13,191
  13,760
  14,363
  15,001
  15,676
  16,389
  17,142
  17,937
  18,775
  19,658
  20,589
  21,569
  22,601
  23,687
  24,830
  26,033
  27,297
Total liabilities and equity, $m
  22,919
  22,635
  23,155
  23,750
  24,419
  25,159
  25,971
  26,856
  27,813
  28,845
  29,952
  31,136
  32,400
  33,745
  35,175
  36,693
  38,301
  40,003
  41,803
  43,704
  45,712
  47,832
  50,066
  52,421
  54,903
  57,517
  60,269
  63,165
  66,213
  69,421
  72,793
Debt-to-equity ratio
  0.829
  0.760
  0.780
  0.800
  0.830
  0.850
  0.880
  0.900
  0.930
  0.960
  0.980
  1.010
  1.030
  1.060
  1.080
  1.110
  1.130
  1.150
  1.180
  1.200
  1.220
  1.240
  1.260
  1.280
  1.290
  1.310
  1.330
  1.340
  1.360
  1.370
  1.390
Adjusted equity ratio
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375
  0.375

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  800
  718
  723
  745
  782
  835
  904
  987
  1,087
  1,202
  1,332
  1,686
  1,850
  2,032
  2,231
  2,449
  2,686
  2,944
  3,223
  3,523
  3,847
  4,195
  4,568
  4,967
  5,395
  5,851
  6,339
  6,858
  7,412
  8,001
  8,628
Depreciation, amort., depletion, $m
  719
  855
  868
  883
  900
  918
  939
  961
  985
  1,011
  1,039
  786
  818
  852
  888
  926
  967
  1,010
  1,055
  1,103
  1,154
  1,208
  1,264
  1,324
  1,386
  1,452
  1,522
  1,595
  1,672
  1,753
  1,838
Funds from operations, $m
  2,498
  1,573
  1,591
  1,628
  1,682
  1,754
  1,843
  1,949
  2,072
  2,213
  2,372
  2,472
  2,668
  2,884
  3,119
  3,376
  3,653
  3,954
  4,278
  4,627
  5,001
  5,402
  5,832
  6,291
  6,781
  7,304
  7,860
  8,453
  9,084
  9,754
  10,465
Change in working capital, $m
  246
  43
  50
  57
  64
  71
  78
  85
  92
  100
  107
  114
  122
  130
  138
  146
  155
  164
  174
  184
  194
  204
  216
  227
  240
  252
  266
  280
  294
  309
  326
Cash from operations, $m
  2,252
  1,530
  1,541
  1,570
  1,617
  1,682
  1,764
  1,863
  1,980
  2,113
  2,265
  2,358
  2,546
  2,754
  2,981
  3,229
  3,498
  3,790
  4,104
  4,443
  4,807
  5,198
  5,616
  6,064
  6,541
  7,051
  7,595
  8,174
  8,789
  9,444
  10,140
Maintenance CAPEX, $m
  0
  -560
  -571
  -585
  -600
  -617
  -635
  -656
  -678
  -702
  -728
  -756
  -786
  -818
  -852
  -888
  -926
  -967
  -1,010
  -1,055
  -1,103
  -1,154
  -1,208
  -1,264
  -1,324
  -1,386
  -1,452
  -1,522
  -1,595
  -1,672
  -1,753
New CAPEX, $m
  -978
  -193
  -227
  -260
  -292
  -323
  -355
  -386
  -418
  -451
  -484
  -517
  -552
  -588
  -625
  -663
  -702
  -743
  -786
  -831
  -877
  -926
  -976
  -1,029
  -1,084
  -1,142
  -1,202
  -1,265
  -1,331
  -1,401
  -1,473
Cash from investing activities, $m
  -1,373
  -753
  -798
  -845
  -892
  -940
  -990
  -1,042
  -1,096
  -1,153
  -1,212
  -1,273
  -1,338
  -1,406
  -1,477
  -1,551
  -1,628
  -1,710
  -1,796
  -1,886
  -1,980
  -2,080
  -2,184
  -2,293
  -2,408
  -2,528
  -2,654
  -2,787
  -2,926
  -3,073
  -3,226
Free cash flow, $m
  879
  776
  742
  726
  726
  742
  774
  821
  883
  961
  1,053
  1,085
  1,208
  1,348
  1,505
  1,678
  1,870
  2,079
  2,308
  2,557
  2,827
  3,118
  3,432
  3,771
  4,134
  4,523
  4,940
  5,387
  5,863
  6,372
  6,914
Issuance/(repayment) of debt, $m
  -277
  284
  325
  372
  418
  463
  508
  553
  598
  645
  692
  740
  790
  841
  894
  948
  1,005
  1,064
  1,125
  1,189
  1,255
  1,324
  1,397
  1,472
  1,551
  1,634
  1,720
  1,810
  1,905
  2,004
  2,108
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  -277
  284
  325
  372
  418
  463
  508
  553
  598
  645
  692
  740
  790
  841
  894
  948
  1,005
  1,064
  1,125
  1,189
  1,255
  1,324
  1,397
  1,472
  1,551
  1,634
  1,720
  1,810
  1,905
  2,004
  2,108
Total cash flow (excl. dividends), $m
  512
  1,060
  1,067
  1,097
  1,144
  1,205
  1,282
  1,374
  1,482
  1,605
  1,745
  1,825
  1,998
  2,189
  2,398
  2,627
  2,874
  3,143
  3,433
  3,746
  4,082
  4,442
  4,829
  5,243
  5,685
  6,157
  6,660
  7,197
  7,768
  8,376
  9,022
Retained Cash Flow (-), $m
  -224
  -153
  -195
  -223
  -251
  -278
  -305
  -332
  -359
  -387
  -415
  -444
  -474
  -505
  -536
  -569
  -603
  -638
  -675
  -713
  -753
  -795
  -838
  -883
  -931
  -980
  -1,032
  -1,086
  -1,143
  -1,203
  -1,265
Prev. year cash balance distribution, $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 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
 
  907
  872
  874
  893
  927
  977
  1,042
  1,123
  1,218
  1,330
  1,381
  1,524
  1,685
  1,862
  2,058
  2,272
  2,505
  2,758
  3,032
  3,329
  3,648
  3,991
  4,359
  4,754
  5,177
  5,628
  6,111
  6,625
  7,173
  7,757
Discount rate, %
 
  6.40
  6.72
  7.06
  7.41
  7.78
  8.17
  8.58
  9.01
  9.46
  9.93
  10.42
  10.95
  11.49
  12.07
  12.67
  13.31
  13.97
  14.67
  15.40
  16.17
  16.98
  17.83
  18.72
  19.66
  20.64
  21.67
  22.76
  23.89
  25.09
  26.34
PV of cash for distribution, $m
 
  852
  766
  713
  671
  638
  610
  586
  563
  540
  516
  464
  438
  409
  378
  344
  308
  271
  235
  199
  166
  135
  108
  84
  64
  48
  34
  24
  16
  11
  7
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Agrium Inc. is a retailer of agricultural products and services in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay and a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. The Company's segments include Retail and Wholesale. As of December 31, 2016, its Retail business unit marketed crop nutrients, crop protection products, seed, merchandise, application and other agronomic services through 1,500 retail locations in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay. Its Wholesale business unit manufactures, mines and markets a range of nutrients, including nitrogen-based, potash and phosphate-based crop nutrient products. As of December 31, 2016, its Wholesale business unit owned and operated five North American nitrogen facilities, four located in Alberta, Canada and one in Borger, Texas, United States.

FINANCIAL RATIOS  of  Agrium Inc. (AGU)

Valuation Ratios
P/E Ratio 23.5
Price to Sales 1
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 8.3
Price to Free Cash Flow 14.7
Growth Rates
Sales Growth Rate -7.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -39.1%
Cap. Spend. - 3 Yr. Gr. Rate -16.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 71.3%
Total Debt to Equity 82.9%
Interest Coverage 4
Management Effectiveness
Return On Assets 4.7%
Ret/ On Assets - 3 Yr. Avg. 5.5%
Return On Total Capital 5.2%
Ret/ On T. Cap. - 3 Yr. Avg. 6.7%
Return On Equity 9.7%
Return On Equity - 3 Yr. Avg. 12%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 24.8%
Gross Margin - 3 Yr. Avg. 24.4%
EBITDA Margin 11.9%
EBITDA Margin - 3 Yr. Avg. 12.1%
Operating Margin 8%
Oper. Margin - 3 Yr. Avg. 8.7%
Pre-Tax Margin 6%
Pre-Tax Margin - 3 Yr. Avg. 7.2%
Net Profit Margin 4.3%
Net Profit Margin - 3 Yr. Avg. 5.2%
Effective Tax Rate 27.3%
Eff/ Tax Rate - 3 Yr. Avg. 25.8%
Payout Ratio 81.4%

AGU stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AGU stock intrinsic value calculation we used $18463 million for the last fiscal year's total revenue generated by Agrium Inc.. The default revenue input number comes from 2016 income statement of Agrium Inc.. 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 AGU stock valuation model: a) initial revenue growth rate of 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 6.4%, whose default value for AGU is calculated based on our internal credit rating of Agrium Inc., 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 Agrium Inc..
    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 AGU stock the variable cost ratio is equal to 54.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $7147 million in the base year in the intrinsic value calculation for AGU 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 5.2% for Agrium Inc..

Corporate tax rate of 27% is the nominal tax rate for Agrium Inc.. 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 AGU 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 AGU are equal to 52.5%.

Life of production assets of 17.3 years is the average useful life of capital assets used in Agrium Inc. 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 AGU is equal to 11.6%. 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 - $8335 million for Agrium Inc. - 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 138.136 million for Agrium Inc. 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 Agrium Inc. at the current share price and the inputted number of shares is $18.8 billion.

RELATED COMPANIES Price Int.Val. Rating
POT Potash Corpora 24.30 3.26  str.sell
Financial statements of AGU
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.