Intrinsic value of Eldorado Gold Corporation - ELD

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$3.84

  Intrinsic Value

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  Value-price divergence*

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$3.84

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

We calculate the intrinsic value of ELD 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 2.8

 

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, %
  -9.58
  18.00
  16.70
  15.53
  14.48
  13.53
  12.68
  11.91
  11.22
  10.60
  10.04
  9.53
  9.08
  8.67
  8.30
  7.97
  7.68
  7.41
  7.17
  6.95
  6.76
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
  5.76
  5.68
  5.61
Revenue, $m
  585
  690
  806
  931
  1,065
  1,210
  1,363
  1,525
  1,696
  1,876
  2,064
  2,261
  2,466
  2,680
  2,903
  3,134
  3,375
  3,625
  3,885
  4,155
  4,436
  4,727
  5,031
  5,347
  5,676
  6,019
  6,376
  6,748
  7,137
  7,542
  7,965
Variable operating expenses, $m
 
  3,331
  3,888
  4,491
  5,142
  5,837
  6,577
  7,361
  8,186
  9,054
  9,962
  10,912
  11,903
  12,935
  14,009
  15,126
  16,288
  17,494
  18,748
  20,051
  21,406
  22,815
  24,280
  25,805
  27,392
  29,046
  30,770
  32,566
  34,441
  36,397
  38,440
Fixed operating expenses, $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
Total operating expenses, $m
  494
  3,331
  3,888
  4,491
  5,142
  5,837
  6,577
  7,361
  8,186
  9,054
  9,962
  10,912
  11,903
  12,935
  14,009
  15,126
  16,288
  17,494
  18,748
  20,051
  21,406
  22,815
  24,280
  25,805
  27,392
  29,046
  30,770
  32,566
  34,441
  36,397
  38,440
Operating income, $m
  91
  -2,641
  -3,082
  -3,561
  -4,076
  -4,628
  -5,214
  -5,835
  -6,490
  -7,178
  -7,898
  -8,651
  -9,436
  -10,255
  -11,106
  -11,992
  -12,913
  -13,869
  -14,863
  -15,897
  -16,971
  -18,087
  -19,249
  -20,458
  -21,716
  -23,027
  -24,394
  -25,818
  -27,304
  -28,855
  -30,475
EBITDA, $m
  192
  -2,418
  -2,822
  -3,260
  -3,732
  -4,237
  -4,774
  -5,343
  -5,942
  -6,572
  -7,232
  -7,921
  -8,640
  -9,389
  -10,169
  -10,980
  -11,823
  -12,699
  -13,609
  -14,555
  -15,538
  -16,561
  -17,624
  -18,731
  -19,884
  -21,084
  -22,335
  -23,639
  -25,000
  -26,420
  -27,903
Interest expense (income), $m
  46
  46
  64
  85
  107
  130
  156
  183
  211
  241
  273
  306
  340
  376
  414
  453
  494
  536
  580
  625
  673
  722
  773
  827
  882
  940
  1,000
  1,063
  1,128
  1,196
  1,267
Earnings before tax, $m
  66
  -2,687
  -3,147
  -3,646
  -4,183
  -4,758
  -5,370
  -6,018
  -6,701
  -7,419
  -8,171
  -8,957
  -9,777
  -10,631
  -11,520
  -12,445
  -13,406
  -14,405
  -15,443
  -16,522
  -17,643
  -18,809
  -20,022
  -21,284
  -22,598
  -23,967
  -25,394
  -26,881
  -28,432
  -30,052
  -31,742
Tax expense, $m
  76
  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
Net income, $m
  -465
  -2,687
  -3,147
  -3,646
  -4,183
  -4,758
  -5,370
  -6,018
  -6,701
  -7,419
  -8,171
  -8,957
  -9,777
  -10,631
  -11,520
  -12,445
  -13,406
  -14,405
  -15,443
  -16,522
  -17,643
  -18,809
  -20,022
  -21,284
  -22,598
  -23,967
  -25,394
  -26,881
  -28,432
  -30,052
  -31,742

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,239
  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
  6,482
  6,163
  7,193
  8,310
  9,513
  10,800
  12,169
  13,618
  15,145
  16,750
  18,431
  20,188
  22,022
  23,931
  25,918
  27,985
  30,133
  32,366
  34,686
  37,097
  39,604
  42,210
  44,921
  47,742
  50,679
  53,738
  56,927
  60,251
  63,719
  67,339
  71,118
Adjusted assets (=assets-cash), $m
  5,243
  6,163
  7,193
  8,310
  9,513
  10,800
  12,169
  13,618
  15,145
  16,750
  18,431
  20,188
  22,022
  23,931
  25,918
  27,985
  30,133
  32,366
  34,686
  37,097
  39,604
  42,210
  44,921
  47,742
  50,679
  53,738
  56,927
  60,251
  63,719
  67,339
  71,118
Revenue / Adjusted assets
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
  0.112
Average production assets, $m
  5,667
  6,687
  7,804
  9,016
  10,321
  11,717
  13,202
  14,775
  16,432
  18,173
  19,997
  21,903
  23,892
  25,964
  28,120
  30,362
  32,693
  35,115
  37,632
  40,248
  42,968
  45,795
  48,736
  51,797
  54,984
  58,303
  61,762
  65,369
  69,132
  73,059
  77,159
Working capital, $m
  1,353
  135
  157
  181
  208
  236
  266
  297
  331
  366
  403
  441
  481
  523
  566
  611
  658
  707
  758
  810
  865
  922
  981
  1,043
  1,107
  1,174
  1,243
  1,316
  1,392
  1,471
  1,553
Total debt, $m
  799
  1,111
  1,460
  1,839
  2,247
  2,683
  3,147
  3,638
  4,156
  4,700
  5,270
  5,866
  6,487
  7,135
  7,808
  8,509
  9,237
  9,994
  10,781
  11,598
  12,448
  13,331
  14,250
  15,206
  16,202
  17,239
  18,320
  19,447
  20,623
  21,850
  23,131
Total liabilities, $m
  1,777
  2,089
  2,438
  2,817
  3,225
  3,661
  4,125
  4,616
  5,134
  5,678
  6,248
  6,844
  7,465
  8,113
  8,786
  9,487
  10,215
  10,972
  11,759
  12,576
  13,426
  14,309
  15,228
  16,184
  17,180
  18,217
  19,298
  20,425
  21,601
  22,828
  24,109
Total equity, $m
  4,705
  4,074
  4,754
  5,493
  6,288
  7,139
  8,044
  9,001
  10,011
  11,072
  12,183
  13,345
  14,556
  15,818
  17,132
  18,498
  19,918
  21,394
  22,927
  24,521
  26,178
  27,901
  29,692
  31,557
  33,499
  35,521
  37,629
  39,826
  42,118
  44,511
  47,009
Total liabilities and equity, $m
  6,482
  6,163
  7,192
  8,310
  9,513
  10,800
  12,169
  13,617
  15,145
  16,750
  18,431
  20,189
  22,021
  23,931
  25,918
  27,985
  30,133
  32,366
  34,686
  37,097
  39,604
  42,210
  44,920
  47,741
  50,679
  53,738
  56,927
  60,251
  63,719
  67,339
  71,118
Debt-to-equity ratio
  0.170
  0.270
  0.310
  0.330
  0.360
  0.380
  0.390
  0.400
  0.420
  0.420
  0.430
  0.440
  0.450
  0.450
  0.460
  0.460
  0.460
  0.470
  0.470
  0.470
  0.480
  0.480
  0.480
  0.480
  0.480
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
Adjusted equity ratio
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661
  0.661

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -465
  -2,687
  -3,147
  -3,646
  -4,183
  -4,758
  -5,370
  -6,018
  -6,701
  -7,419
  -8,171
  -8,957
  -9,777
  -10,631
  -11,520
  -12,445
  -13,406
  -14,405
  -15,443
  -16,522
  -17,643
  -18,809
  -20,022
  -21,284
  -22,598
  -23,967
  -25,394
  -26,881
  -28,432
  -30,052
  -31,742
Depreciation, amort., depletion, $m
  101
  223
  260
  301
  344
  391
  440
  492
  548
  606
  667
  730
  796
  865
  937
  1,012
  1,090
  1,171
  1,254
  1,342
  1,432
  1,527
  1,625
  1,727
  1,833
  1,943
  2,059
  2,179
  2,304
  2,435
  2,572
Funds from operations, $m
  194
  -2,465
  -2,886
  -3,345
  -3,839
  -4,368
  -4,930
  -5,525
  -6,153
  -6,813
  -7,504
  -8,227
  -8,980
  -9,766
  -10,583
  -11,433
  -12,316
  -13,234
  -14,189
  -15,180
  -16,211
  -17,283
  -18,398
  -19,558
  -20,766
  -22,024
  -23,335
  -24,702
  -26,128
  -27,616
  -29,170
Change in working capital, $m
  40
  21
  22
  24
  26
  28
  30
  32
  33
  35
  37
  38
  40
  42
  43
  45
  47
  49
  51
  53
  55
  57
  59
  62
  64
  67
  70
  73
  76
  79
  83
Cash from operations, $m
  154
  -3,232
  -2,909
  -3,369
  -3,865
  -4,396
  -4,960
  -5,557
  -6,187
  -6,848
  -7,541
  -8,265
  -9,020
  -9,807
  -10,626
  -11,478
  -12,363
  -13,283
  -14,239
  -15,233
  -16,266
  -17,340
  -18,457
  -19,619
  -20,830
  -22,091
  -23,405
  -24,775
  -26,204
  -27,695
  -29,253
Maintenance CAPEX, $m
  0
  -189
  -223
  -260
  -301
  -344
  -391
  -440
  -492
  -548
  -606
  -667
  -730
  -796
  -865
  -937
  -1,012
  -1,090
  -1,171
  -1,254
  -1,342
  -1,432
  -1,527
  -1,625
  -1,727
  -1,833
  -1,943
  -2,059
  -2,179
  -2,304
  -2,435
New CAPEX, $m
  -402
  -1,020
  -1,117
  -1,212
  -1,305
  -1,396
  -1,485
  -1,572
  -1,657
  -1,741
  -1,824
  -1,906
  -1,989
  -2,072
  -2,156
  -2,242
  -2,331
  -2,422
  -2,517
  -2,616
  -2,719
  -2,827
  -2,941
  -3,061
  -3,187
  -3,319
  -3,459
  -3,607
  -3,763
  -3,927
  -4,100
Cash from investing activities, $m
  650
  -1,209
  -1,340
  -1,472
  -1,606
  -1,740
  -1,876
  -2,012
  -2,149
  -2,289
  -2,430
  -2,573
  -2,719
  -2,868
  -3,021
  -3,179
  -3,343
  -3,512
  -3,688
  -3,870
  -4,061
  -4,259
  -4,468
  -4,686
  -4,914
  -5,152
  -5,402
  -5,666
  -5,942
  -6,231
  -6,535
Free cash flow, $m
  804
  -4,441
  -4,249
  -4,841
  -5,471
  -6,136
  -6,836
  -7,569
  -8,337
  -9,137
  -9,971
  -10,838
  -11,739
  -12,676
  -13,648
  -14,658
  -15,706
  -16,795
  -17,927
  -19,103
  -20,327
  -21,599
  -22,925
  -24,305
  -25,743
  -27,243
  -28,807
  -30,440
  -32,145
  -33,927
  -35,788
Issuance/(repayment) of debt, $m
  0
  312
  349
  379
  408
  436
  464
  491
  518
  544
  570
  596
  621
  647
  674
  701
  728
  757
  786
  817
  850
  883
  919
  956
  996
  1,037
  1,081
  1,127
  1,176
  1,227
  1,281
Issuance/(repurchase) of shares, $m
  0
  3,498
  4,580
  5,201
  5,858
  6,550
  7,277
  8,036
  8,828
  9,654
  10,512
  11,404
  12,329
  13,290
  14,288
  15,323
  16,398
  17,514
  18,674
  19,880
  21,134
  22,439
  23,797
  25,213
  26,689
  28,228
  29,834
  31,511
  33,262
  35,092
  37,005
Cash from financing (excl. dividends), $m  
  0
  3,810
  4,929
  5,580
  6,266
  6,986
  7,741
  8,527
  9,346
  10,198
  11,082
  12,000
  12,950
  13,937
  14,962
  16,024
  17,126
  18,271
  19,460
  20,697
  21,984
  23,322
  24,716
  26,169
  27,685
  29,265
  30,915
  32,638
  34,438
  36,319
  38,286
Total cash flow (excl. dividends), $m
  804
  -4,129
  -3,900
  -4,463
  -5,063
  -5,700
  -6,372
  -7,078
  -7,819
  -8,593
  -9,401
  -10,242
  -11,118
  -12,028
  -12,974
  -13,957
  -14,978
  -16,038
  -17,140
  -18,286
  -19,477
  -20,716
  -22,006
  -23,348
  -24,747
  -26,206
  -27,726
  -29,313
  -30,970
  -32,700
  -34,507
Retained Cash Flow (-), $m
  364
  -608
  -680
  -738
  -795
  -851
  -905
  -958
  -1,010
  -1,061
  -1,111
  -1,161
  -1,212
  -1,262
  -1,314
  -1,366
  -1,420
  -1,476
  -1,534
  -1,594
  -1,657
  -1,723
  -1,792
  -1,865
  -1,941
  -2,022
  -2,108
  -2,197
  -2,292
  -2,392
  -2,498
Prev. year cash balance distribution, $m
 
  1,239
  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
 
  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
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for 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
Current shareholders' claim on cash, %
  100
  41.0
  15.7
  6.1
  2.4
  1.0
  0.4
  0.2
  0.1
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, and mining of gold properties in Turkey, China, Greece, Brazil, and Romania. It also explores for iron, silver, lead, and zinc. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was founded in 1992 and is headquartered in Vancouver, Canada.

FINANCIAL RATIOS  of  Eldorado Gold Corporation (ELD)

Valuation Ratios
P/E Ratio -5.9
Price to Sales 4.7
Price to Book 0.6
Price to Tangible Book
Price to Cash Flow 17.9
Price to Free Cash Flow -11.1
Growth Rates
Sales Growth Rate -9.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -14.3%
Cap. Spend. - 3 Yr. Gr. Rate -9.2%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 17%
Total Debt to Equity 17%
Interest Coverage 2
Management Effectiveness
Return On Assets -6.8%
Ret/ On Assets - 3 Yr. Avg. -9.6%
Return On Total Capital -8.2%
Ret/ On T. Cap. - 3 Yr. Avg. -12.2%
Return On Equity -9.5%
Return On Equity - 3 Yr. Avg. -13.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 37.6%
Gross Margin - 3 Yr. Avg. 32.8%
EBITDA Margin 36.4%
EBITDA Margin - 3 Yr. Avg. -93.9%
Operating Margin 15.6%
Oper. Margin - 3 Yr. Avg. -114.4%
Pre-Tax Margin 11.3%
Pre-Tax Margin - 3 Yr. Avg. -117.5%
Net Profit Margin -79.5%
Net Profit Margin - 3 Yr. Avg. -130.5%
Effective Tax Rate 115.2%
Eff/ Tax Rate - 3 Yr. Avg. 60.1%
Payout Ratio 0%

ELD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ELD stock intrinsic value calculation we used $585 million for the last fiscal year's total revenue generated by Eldorado Gold Corporation. The default revenue input number comes from 2016 income statement of Eldorado Gold Corporation. 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 ELD stock valuation model: a) initial revenue growth rate of 18% 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 4.3%, whose default value for ELD is calculated based on our internal credit rating of Eldorado Gold Corporation, 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 Eldorado Gold Corporation.
    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 ELD stock the variable cost ratio is equal to 482.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ELD 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 5.8% for Eldorado Gold Corporation.

Corporate tax rate of 27% is the nominal tax rate for Eldorado Gold Corporation. 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 ELD 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 ELD are equal to 968.7%.

Life of production assets of 56.4 years is the average useful life of capital assets used in Eldorado Gold Corporation 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 ELD is equal to 19.5%. 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 - $4705 million for Eldorado Gold Corporation - 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 721.382 million for Eldorado Gold Corporation 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 Eldorado Gold Corporation at the current share price and the inputted number of shares is $2.8 billion.


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Stock chart of ELD Financial statements of ELD
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