Intrinsic value of IAMGOLD Corporation - IMG

Previous Close

$7.16

  Intrinsic Value

$1.61

stock screener

  Rating & Target

str. sell

-78%

  Value-price divergence*

-205%

Previous close

$7.16

 
Intrinsic value

$1.61

 
Up/down potential

-78%

 
Rating

str. sell

 
Value-price divergence*

-205%

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

We calculate the intrinsic value of IMG 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 3.3

 

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, %
  7.67
  18.50
  17.15
  15.94
  14.84
  13.86
  12.97
  12.17
  11.46
  10.81
  10.23
  9.71
  9.24
  8.81
  8.43
  8.09
  7.78
  7.50
  7.25
  7.03
  6.82
  6.64
  6.48
  6.33
  6.20
  6.08
  5.97
  5.87
  5.79
  5.71
  5.64
Revenue, $m
  1,334
  1,581
  1,852
  2,147
  2,466
  2,807
  3,171
  3,558
  3,965
  4,394
  4,843
  5,314
  5,804
  6,316
  6,848
  7,402
  7,978
  8,577
  9,199
  9,845
  10,517
  11,215
  11,941
  12,697
  13,484
  14,303
  15,157
  16,047
  16,976
  17,944
  18,956
Variable operating expenses, $m
 
  2,890
  3,385
  3,925
  4,507
  5,132
  5,797
  6,503
  7,248
  8,032
  8,854
  9,713
  10,610
  11,545
  12,519
  13,531
  14,584
  15,678
  16,815
  17,996
  19,224
  20,501
  21,829
  23,211
  24,649
  26,147
  27,707
  29,335
  31,032
  32,802
  34,651
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
  1,284
  2,890
  3,385
  3,925
  4,507
  5,132
  5,797
  6,503
  7,248
  8,032
  8,854
  9,713
  10,610
  11,545
  12,519
  13,531
  14,584
  15,678
  16,815
  17,996
  19,224
  20,501
  21,829
  23,211
  24,649
  26,147
  27,707
  29,335
  31,032
  32,802
  34,651
Operating income, $m
  49
  -1,309
  -1,533
  -1,778
  -2,042
  -2,324
  -2,626
  -2,946
  -3,283
  -3,638
  -4,010
  -4,400
  -4,806
  -5,229
  -5,670
  -6,129
  -6,606
  -7,101
  -7,616
  -8,152
  -8,708
  -9,286
  -9,888
  -10,513
  -11,165
  -11,843
  -12,550
  -13,287
  -14,056
  -14,858
  -15,695
EBITDA, $m
  405
  -889
  -1,042
  -1,208
  -1,387
  -1,579
  -1,784
  -2,001
  -2,230
  -2,472
  -2,724
  -2,989
  -3,265
  -3,553
  -3,852
  -4,164
  -4,488
  -4,824
  -5,174
  -5,538
  -5,916
  -6,309
  -6,717
  -7,142
  -7,585
  -8,046
  -8,526
  -9,027
  -9,549
  -10,094
  -10,663
Interest expense (income), $m
  33
  27
  39
  52
  67
  82
  99
  117
  136
  156
  177
  199
  222
  246
  271
  297
  324
  353
  382
  412
  444
  477
  511
  547
  584
  622
  662
  704
  748
  793
  841
Earnings before tax, $m
  129
  -1,336
  -1,572
  -1,830
  -2,108
  -2,407
  -2,725
  -3,063
  -3,419
  -3,794
  -4,187
  -4,599
  -5,028
  -5,475
  -5,941
  -6,426
  -6,930
  -7,454
  -7,998
  -8,564
  -9,152
  -9,763
  -10,399
  -11,060
  -11,749
  -12,466
  -13,213
  -13,991
  -14,804
  -15,651
  -16,536
Tax expense, $m
  46
  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
  71
  -1,336
  -1,572
  -1,830
  -2,108
  -2,407
  -2,725
  -3,063
  -3,419
  -3,794
  -4,187
  -4,599
  -5,028
  -5,475
  -5,941
  -6,426
  -6,930
  -7,454
  -7,998
  -8,564
  -9,152
  -9,763
  -10,399
  -11,060
  -11,749
  -12,466
  -13,213
  -13,991
  -14,804
  -15,651
  -16,536

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  881
  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
  4,594
  4,403
  5,158
  5,980
  6,868
  7,820
  8,834
  9,910
  11,045
  12,239
  13,491
  14,801
  16,168
  17,593
  19,076
  20,619
  22,223
  23,890
  25,623
  27,423
  29,294
  31,240
  33,263
  35,368
  37,560
  39,843
  42,221
  44,700
  47,286
  49,984
  52,801
Adjusted assets (=assets-cash), $m
  3,713
  4,403
  5,158
  5,980
  6,868
  7,820
  8,834
  9,910
  11,045
  12,239
  13,491
  14,801
  16,168
  17,593
  19,076
  20,619
  22,223
  23,890
  25,623
  27,423
  29,294
  31,240
  33,263
  35,368
  37,560
  39,843
  42,221
  44,700
  47,286
  49,984
  52,801
Revenue / Adjusted assets
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
Average production assets, $m
  2,515
  2,980
  3,491
  4,047
  4,648
  5,292
  5,978
  6,706
  7,474
  8,282
  9,130
  10,016
  10,941
  11,905
  12,909
  13,953
  15,039
  16,167
  17,339
  18,557
  19,824
  21,140
  22,510
  23,934
  25,417
  26,962
  28,571
  30,249
  31,999
  33,825
  35,732
Working capital, $m
  1,105
  266
  311
  361
  414
  472
  533
  598
  666
  738
  814
  893
  975
  1,061
  1,151
  1,244
  1,340
  1,441
  1,545
  1,654
  1,767
  1,884
  2,006
  2,133
  2,265
  2,403
  2,546
  2,696
  2,852
  3,015
  3,185
Total debt, $m
  656
  953
  1,277
  1,630
  2,010
  2,419
  2,854
  3,315
  3,802
  4,315
  4,852
  5,414
  6,000
  6,611
  7,248
  7,910
  8,598
  9,313
  10,056
  10,828
  11,631
  12,466
  13,334
  14,237
  15,177
  16,156
  17,177
  18,240
  19,350
  20,507
  21,716
Total liabilities, $m
  1,593
  1,889
  2,213
  2,566
  2,946
  3,355
  3,790
  4,251
  4,738
  5,251
  5,788
  6,350
  6,936
  7,547
  8,184
  8,846
  9,534
  10,249
  10,992
  11,764
  12,567
  13,402
  14,270
  15,173
  16,113
  17,092
  18,113
  19,176
  20,286
  21,443
  22,652
Total equity, $m
  3,002
  2,514
  2,945
  3,415
  3,922
  4,465
  5,044
  5,658
  6,307
  6,989
  7,703
  8,451
  9,232
  10,045
  10,892
  11,773
  12,689
  13,641
  14,630
  15,658
  16,727
  17,838
  18,993
  20,195
  21,447
  22,750
  24,108
  25,524
  27,000
  28,541
  30,150
Total liabilities and equity, $m
  4,595
  4,403
  5,158
  5,981
  6,868
  7,820
  8,834
  9,909
  11,045
  12,240
  13,491
  14,801
  16,168
  17,592
  19,076
  20,619
  22,223
  23,890
  25,622
  27,422
  29,294
  31,240
  33,263
  35,368
  37,560
  39,842
  42,221
  44,700
  47,286
  49,984
  52,802
Debt-to-equity ratio
  0.219
  0.380
  0.430
  0.480
  0.510
  0.540
  0.570
  0.590
  0.600
  0.620
  0.630
  0.640
  0.650
  0.660
  0.670
  0.670
  0.680
  0.680
  0.690
  0.690
  0.700
  0.700
  0.700
  0.700
  0.710
  0.710
  0.710
  0.710
  0.720
  0.720
  0.720
Adjusted equity ratio
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  71
  -1,336
  -1,572
  -1,830
  -2,108
  -2,407
  -2,725
  -3,063
  -3,419
  -3,794
  -4,187
  -4,599
  -5,028
  -5,475
  -5,941
  -6,426
  -6,930
  -7,454
  -7,998
  -8,564
  -9,152
  -9,763
  -10,399
  -11,060
  -11,749
  -12,466
  -13,213
  -13,991
  -14,804
  -15,651
  -16,536
Depreciation, amort., depletion, $m
  356
  420
  492
  570
  655
  745
  842
  945
  1,053
  1,167
  1,286
  1,411
  1,541
  1,677
  1,818
  1,965
  2,118
  2,277
  2,442
  2,614
  2,792
  2,978
  3,170
  3,371
  3,580
  3,797
  4,024
  4,260
  4,507
  4,764
  5,033
Funds from operations, $m
  451
  -916
  -1,081
  -1,260
  -1,454
  -1,662
  -1,883
  -2,118
  -2,366
  -2,627
  -2,901
  -3,188
  -3,487
  -3,799
  -4,123
  -4,461
  -4,812
  -5,177
  -5,556
  -5,950
  -6,360
  -6,785
  -7,228
  -7,689
  -8,169
  -8,668
  -9,188
  -9,731
  -10,297
  -10,887
  -11,504
Change in working capital, $m
  26
  41
  46
  50
  54
  57
  61
  65
  68
  72
  76
  79
  82
  86
  89
  93
  97
  101
  104
  109
  113
  117
  122
  127
  132
  138
  143
  150
  156
  163
  170
Cash from operations, $m
  425
  -958
  -1,126
  -1,310
  -1,507
  -1,719
  -1,944
  -2,183
  -2,435
  -2,699
  -2,977
  -3,267
  -3,569
  -3,885
  -4,213
  -4,554
  -4,909
  -5,277
  -5,661
  -6,059
  -6,472
  -6,903
  -7,350
  -7,816
  -8,301
  -8,806
  -9,332
  -9,881
  -10,453
  -11,050
  -11,673
Maintenance CAPEX, $m
  0
  -354
  -420
  -492
  -570
  -655
  -745
  -842
  -945
  -1,053
  -1,167
  -1,286
  -1,411
  -1,541
  -1,677
  -1,818
  -1,965
  -2,118
  -2,277
  -2,442
  -2,614
  -2,792
  -2,978
  -3,170
  -3,371
  -3,580
  -3,797
  -4,024
  -4,260
  -4,507
  -4,764
New CAPEX, $m
  -370
  -465
  -511
  -556
  -601
  -644
  -686
  -728
  -768
  -808
  -847
  -886
  -925
  -964
  -1,004
  -1,044
  -1,085
  -1,128
  -1,172
  -1,218
  -1,266
  -1,317
  -1,369
  -1,425
  -1,483
  -1,545
  -1,609
  -1,678
  -1,750
  -1,826
  -1,906
Cash from investing activities, $m
  -223
  -819
  -931
  -1,048
  -1,171
  -1,299
  -1,431
  -1,570
  -1,713
  -1,861
  -2,014
  -2,172
  -2,336
  -2,505
  -2,681
  -2,862
  -3,050
  -3,246
  -3,449
  -3,660
  -3,880
  -4,109
  -4,347
  -4,595
  -4,854
  -5,125
  -5,406
  -5,702
  -6,010
  -6,333
  -6,670
Free cash flow, $m
  202
  -1,777
  -2,057
  -2,358
  -2,678
  -3,018
  -3,376
  -3,753
  -4,148
  -4,560
  -4,991
  -5,439
  -5,905
  -6,390
  -6,893
  -7,416
  -7,960
  -8,524
  -9,110
  -9,719
  -10,353
  -11,011
  -11,697
  -12,411
  -13,155
  -13,930
  -14,739
  -15,582
  -16,463
  -17,383
  -18,344
Issuance/(repayment) of debt, $m
  -193
  297
  324
  353
  381
  408
  435
  461
  487
  512
  537
  562
  586
  611
  636
  662
  688
  715
  743
  772
  803
  835
  868
  903
  940
  979
  1,020
  1,064
  1,109
  1,158
  1,209
Issuance/(repurchase) of shares, $m
  356
  1,729
  2,004
  2,299
  2,615
  2,950
  3,304
  3,677
  4,067
  4,476
  4,902
  5,346
  5,809
  6,289
  6,788
  7,307
  7,846
  8,406
  8,987
  9,592
  10,220
  10,874
  11,554
  12,262
  13,000
  13,769
  14,571
  15,407
  16,280
  17,192
  18,145
Cash from financing (excl. dividends), $m  
  30
  2,026
  2,328
  2,652
  2,996
  3,358
  3,739
  4,138
  4,554
  4,988
  5,439
  5,908
  6,395
  6,900
  7,424
  7,969
  8,534
  9,121
  9,730
  10,364
  11,023
  11,709
  12,422
  13,165
  13,940
  14,748
  15,591
  16,471
  17,389
  18,350
  19,354
Total cash flow (excl. dividends), $m
  231
  249
  271
  295
  318
  341
  363
  385
  407
  428
  449
  469
  490
  511
  531
  553
  575
  597
  621
  645
  670
  697
  725
  754
  785
  818
  852
  888
  926
  967
  1,009
Retained Cash Flow (-), $m
  -441
  -1,729
  -2,004
  -2,299
  -2,615
  -2,950
  -3,304
  -3,677
  -4,067
  -4,476
  -4,902
  -5,346
  -5,809
  -6,289
  -6,788
  -7,307
  -7,846
  -8,406
  -8,987
  -9,592
  -10,220
  -10,874
  -11,554
  -12,262
  -13,000
  -13,769
  -14,571
  -15,407
  -16,280
  -17,192
  -18,145
Prev. year cash balance distribution, $m
 
  881
  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
 
  -599
  -1,733
  -2,005
  -2,297
  -2,609
  -2,941
  -3,291
  -3,661
  -4,048
  -4,454
  -4,877
  -5,319
  -5,779
  -6,257
  -6,754
  -7,271
  -7,809
  -8,367
  -8,947
  -9,550
  -10,177
  -10,829
  -11,508
  -12,215
  -12,951
  -13,719
  -14,519
  -15,354
  -16,225
  -17,135
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
 
  -574
  -1,587
  -1,745
  -1,891
  -2,023
  -2,134
  -2,224
  -2,288
  -2,325
  -2,335
  -2,316
  -2,270
  -2,197
  -2,101
  -1,983
  -1,848
  -1,699
  -1,541
  -1,378
  -1,213
  -1,053
  -899
  -754
  -622
  -504
  -400
  -312
  -238
  -177
  -129
Current shareholders' claim on cash, %
  100
  57.7
  33.6
  19.7
  11.7
  7.0
  4.2
  2.5
  1.5
  0.9
  0.6
  0.4
  0.2
  0.1
  0.1
  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

IAMGOLD Corporation explores for, develops, and operates mining properties in North and South America, and West Africa. The company explores for gold, copper, zinc, and silver. The company owns interest in the Rosebel gold mine located in north eastern Suriname, South America; Essakane gold mine in north-eastern Burkina Faso, West Africa; Westwood gold mine southwestern Québec, Canada; and Côté gold development project located to the southwest of Gogama, Ontario. It also holds interests in various exploration projects, including Boto gold project in eastern Senegal; and Pitangui project located in Brazil. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

FINANCIAL RATIOS  of  IAMGOLD Corporation (IMG)

Valuation Ratios
P/E Ratio 45.8
Price to Sales 2.4
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 7.6
Price to Free Cash Flow 59.1
Growth Rates
Sales Growth Rate 7.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 36.5%
Cap. Spend. - 3 Yr. Gr. Rate -15%
Financial Strength
Quick Ratio NaN
Current Ratio 0.5
LT Debt to Equity 21.9%
Total Debt to Equity 21.9%
Interest Coverage 5
Management Effectiveness
Return On Assets 2.1%
Ret/ On Assets - 3 Yr. Avg. -7.1%
Return On Total Capital 2%
Ret/ On T. Cap. - 3 Yr. Avg. -10%
Return On Equity 2.6%
Return On Equity - 3 Yr. Avg. -12.8%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 10.3%
Gross Margin - 3 Yr. Avg. 5.3%
EBITDA Margin 38.8%
EBITDA Margin - 3 Yr. Avg. -1.1%
Operating Margin 3.7%
Oper. Margin - 3 Yr. Avg. -27.7%
Pre-Tax Margin 9.7%
Pre-Tax Margin - 3 Yr. Avg. -30%
Net Profit Margin 5.3%
Net Profit Margin - 3 Yr. Avg. -32.5%
Effective Tax Rate 35.7%
Eff/ Tax Rate - 3 Yr. Avg. -15.9%
Payout Ratio 0%

IMG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IMG stock intrinsic value calculation we used $1334 million for the last fiscal year's total revenue generated by IAMGOLD Corporation. The default revenue input number comes from 2016 income statement of IAMGOLD 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 IMG stock valuation model: a) initial revenue growth rate of 18.5% 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 IMG is calculated based on our internal credit rating of IAMGOLD 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 IAMGOLD 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 IMG stock the variable cost ratio is equal to 182.8%.

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 IMG 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 4.1% for IAMGOLD Corporation.

Corporate tax rate of 27% is the nominal tax rate for IAMGOLD 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 IMG 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 IMG are equal to 188.5%.

Life of production assets of 7.1 years is the average useful life of capital assets used in IAMGOLD 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 IMG is equal to 16.8%. 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 - $3002 million for IAMGOLD 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 465.986 million for IAMGOLD 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 IAMGOLD Corporation at the current share price and the inputted number of shares is $3.3 billion.

RELATED COMPANIES Price Int.Val. Rating
K Kinross Gold C 5.34 1.08  str.sell
AEM Agnico Eagle M 58.92 5.53  str.sell
ELD Eldorado Gold 2.39 1.63  str.sell
SMF Semafo Inc. 3.18 2.31  hold
BTO B2Gold Corp. 3.13 0.50  str.sell
EDV Endeavour Mini 22.38 3.19  str.sell
ABX Barrick Gold C 20.95 1.94  str.sell
Stock chart of IMG Financial statements of IMG
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.