Intrinsic value of Methanex Corporation - MX

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$62.32

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$62.32

 
Intrinsic value

$163.60

 
Up/down potential

+163%

 
Rating

str. buy

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

We calculate the intrinsic value of MX 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 5.6

 

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, %
  -10.21
  20.90
  19.31
  17.88
  16.59
  15.43
  14.39
  13.45
  12.60
  11.84
  11.16
  10.54
  9.99
  9.49
  9.04
  8.64
  8.27
  7.95
  7.65
  7.39
  7.15
  6.93
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.92
  5.83
  5.75
Revenue, $m
  2,700
  3,264
  3,895
  4,591
  5,353
  6,179
  7,068
  8,018
  9,029
  10,098
  11,225
  12,409
  13,649
  14,944
  16,295
  17,703
  19,167
  20,690
  22,274
  23,919
  25,628
  27,405
  29,252
  31,173
  33,171
  35,250
  37,415
  39,670
  42,020
  44,471
  47,028
Variable operating expenses, $m
 
  584
  697
  822
  958
  1,106
  1,265
  1,435
  1,616
  1,808
  2,009
  2,221
  2,443
  2,675
  2,917
  3,169
  3,431
  3,704
  3,987
  4,281
  4,587
  4,906
  5,236
  5,580
  5,938
  6,310
  6,697
  7,101
  7,522
  7,960
  8,418
Fixed operating expenses, $m
 
  2,258
  2,315
  2,372
  2,432
  2,492
  2,555
  2,619
  2,684
  2,751
  2,820
  2,891
  2,963
  3,037
  3,113
  3,191
  3,270
  3,352
  3,436
  3,522
  3,610
  3,700
  3,793
  3,887
  3,985
  4,084
  4,186
  4,291
  4,398
  4,508
  4,621
Total operating expenses, $m
  2,662
  2,842
  3,012
  3,194
  3,390
  3,598
  3,820
  4,054
  4,300
  4,559
  4,829
  5,112
  5,406
  5,712
  6,030
  6,360
  6,701
  7,056
  7,423
  7,803
  8,197
  8,606
  9,029
  9,467
  9,923
  10,394
  10,883
  11,392
  11,920
  12,468
  13,039
Operating income, $m
  38
  422
  883
  1,397
  1,963
  2,580
  3,248
  3,964
  4,729
  5,540
  6,396
  7,297
  8,243
  9,232
  10,266
  11,343
  12,466
  13,635
  14,851
  16,115
  17,431
  18,800
  20,224
  21,706
  23,249
  24,856
  26,531
  28,278
  30,101
  32,003
  33,989
EBITDA, $m
  346
  793
  1,326
  1,919
  2,572
  3,283
  4,052
  4,877
  5,756
  6,688
  7,673
  8,709
  9,796
  10,932
  12,119
  13,357
  14,647
  15,989
  17,385
  18,837
  20,347
  21,917
  23,552
  25,252
  27,023
  28,867
  30,788
  32,791
  34,881
  37,062
  39,339
Interest expense (income), $m
  112
  110
  154
  204
  258
  318
  383
  453
  528
  607
  691
  780
  873
  970
  1,072
  1,178
  1,289
  1,404
  1,524
  1,648
  1,778
  1,912
  2,052
  2,197
  2,348
  2,505
  2,668
  2,838
  3,016
  3,200
  3,393
Earnings before tax, $m
  -51
  312
  729
  1,193
  1,704
  2,262
  2,865
  3,511
  4,201
  4,932
  5,705
  6,517
  7,370
  8,262
  9,193
  10,165
  11,177
  12,231
  13,327
  14,467
  15,653
  16,888
  18,172
  19,509
  20,901
  22,351
  23,863
  25,440
  27,085
  28,802
  30,596
Tax expense, $m
  -13
  84
  197
  322
  460
  611
  773
  948
  1,134
  1,332
  1,540
  1,760
  1,990
  2,231
  2,482
  2,745
  3,018
  3,302
  3,598
  3,906
  4,226
  4,560
  4,906
  5,267
  5,643
  6,035
  6,443
  6,869
  7,313
  7,777
  8,261
Net income, $m
  -17
  228
  532
  871
  1,244
  1,651
  2,091
  2,563
  3,067
  3,601
  4,164
  4,758
  5,380
  6,031
  6,711
  7,420
  8,159
  8,928
  9,729
  10,561
  11,427
  12,328
  13,266
  14,241
  15,258
  16,316
  17,420
  18,571
  19,772
  21,026
  22,335

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  302
  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
  6,156
  7,081
  8,448
  9,959
  11,611
  13,403
  15,331
  17,393
  19,586
  21,906
  24,350
  26,918
  29,607
  32,416
  35,347
  38,401
  41,578
  44,882
  48,316
  51,885
  55,593
  59,448
  63,454
  67,620
  71,954
  76,465
  81,161
  86,052
  91,151
  96,467
  102,013
Adjusted assets (=assets-cash), $m
  5,854
  7,081
  8,448
  9,959
  11,611
  13,403
  15,331
  17,393
  19,586
  21,906
  24,350
  26,918
  29,607
  32,416
  35,347
  38,401
  41,578
  44,882
  48,316
  51,885
  55,593
  59,448
  63,454
  67,620
  71,954
  76,465
  81,161
  86,052
  91,151
  96,467
  102,013
Revenue / Adjusted assets
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
Average production assets, $m
  4,240
  5,125
  6,115
  7,208
  8,404
  9,701
  11,096
  12,589
  14,176
  15,855
  17,624
  19,482
  21,428
  23,462
  25,583
  27,793
  30,093
  32,484
  34,969
  37,552
  40,237
  43,026
  45,926
  48,942
  52,078
  55,343
  58,742
  62,282
  65,972
  69,820
  73,834
Working capital, $m
  566
  408
  487
  574
  669
  772
  883
  1,002
  1,129
  1,262
  1,403
  1,551
  1,706
  1,868
  2,037
  2,213
  2,396
  2,586
  2,784
  2,990
  3,204
  3,426
  3,657
  3,897
  4,146
  4,406
  4,677
  4,959
  5,253
  5,559
  5,878
Total debt, $m
  2,103
  2,855
  3,773
  4,786
  5,895
  7,097
  8,391
  9,775
  11,246
  12,803
  14,443
  16,166
  17,970
  19,855
  21,822
  23,871
  26,003
  28,220
  30,524
  32,919
  35,407
  37,993
  40,682
  43,477
  46,385
  49,412
  52,563
  55,845
  59,266
  62,833
  66,554
Total liabilities, $m
  3,999
  4,751
  5,669
  6,682
  7,791
  8,993
  10,287
  11,671
  13,142
  14,699
  16,339
  18,062
  19,866
  21,751
  23,718
  25,767
  27,899
  30,116
  32,420
  34,815
  37,303
  39,889
  42,578
  45,373
  48,281
  51,308
  54,459
  57,741
  61,162
  64,729
  68,450
Total equity, $m
  2,157
  2,330
  2,779
  3,276
  3,820
  4,410
  5,044
  5,722
  6,444
  7,207
  8,011
  8,856
  9,741
  10,665
  11,629
  12,634
  13,679
  14,766
  15,896
  17,070
  18,290
  19,558
  20,876
  22,247
  23,673
  25,157
  26,702
  28,311
  29,989
  31,738
  33,562
Total liabilities and equity, $m
  6,156
  7,081
  8,448
  9,958
  11,611
  13,403
  15,331
  17,393
  19,586
  21,906
  24,350
  26,918
  29,607
  32,416
  35,347
  38,401
  41,578
  44,882
  48,316
  51,885
  55,593
  59,447
  63,454
  67,620
  71,954
  76,465
  81,161
  86,052
  91,151
  96,467
  102,012
Debt-to-equity ratio
  0.975
  1.230
  1.360
  1.460
  1.540
  1.610
  1.660
  1.710
  1.750
  1.780
  1.800
  1.830
  1.840
  1.860
  1.880
  1.890
  1.900
  1.910
  1.920
  1.930
  1.940
  1.940
  1.950
  1.950
  1.960
  1.960
  1.970
  1.970
  1.980
  1.980
  1.980
Adjusted equity ratio
  0.317
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -17
  228
  532
  871
  1,244
  1,651
  2,091
  2,563
  3,067
  3,601
  4,164
  4,758
  5,380
  6,031
  6,711
  7,420
  8,159
  8,928
  9,729
  10,561
  11,427
  12,328
  13,266
  14,241
  15,258
  16,316
  17,420
  18,571
  19,772
  21,026
  22,335
Depreciation, amort., depletion, $m
  308
  371
  443
  522
  609
  703
  804
  912
  1,027
  1,149
  1,277
  1,412
  1,553
  1,700
  1,854
  2,014
  2,181
  2,354
  2,534
  2,721
  2,916
  3,118
  3,328
  3,546
  3,774
  4,010
  4,257
  4,513
  4,781
  5,059
  5,350
Funds from operations, $m
  276
  599
  975
  1,393
  1,853
  2,354
  2,895
  3,475
  4,094
  4,749
  5,442
  6,169
  6,933
  7,731
  8,565
  9,434
  10,340
  11,282
  12,263
  13,282
  14,343
  15,446
  16,593
  17,788
  19,031
  20,327
  21,677
  23,084
  24,553
  26,085
  27,685
Change in working capital, $m
  -62
  71
  79
  87
  95
  103
  111
  119
  126
  134
  141
  148
  155
  162
  169
  176
  183
  190
  198
  206
  214
  222
  231
  240
  250
  260
  271
  282
  294
  306
  320
Cash from operations, $m
  338
  501
  896
  1,306
  1,758
  2,251
  2,784
  3,357
  3,967
  4,616
  5,301
  6,021
  6,778
  7,569
  8,396
  9,258
  10,157
  11,092
  12,065
  13,077
  14,129
  15,224
  16,363
  17,548
  18,782
  20,067
  21,406
  22,802
  24,259
  25,779
  27,366
Maintenance CAPEX, $m
  0
  -307
  -371
  -443
  -522
  -609
  -703
  -804
  -912
  -1,027
  -1,149
  -1,277
  -1,412
  -1,553
  -1,700
  -1,854
  -2,014
  -2,181
  -2,354
  -2,534
  -2,721
  -2,916
  -3,118
  -3,328
  -3,546
  -3,774
  -4,010
  -4,257
  -4,513
  -4,781
  -5,059
New CAPEX, $m
  -135
  -885
  -990
  -1,093
  -1,196
  -1,297
  -1,396
  -1,492
  -1,587
  -1,679
  -1,769
  -1,858
  -1,946
  -2,034
  -2,121
  -2,210
  -2,300
  -2,391
  -2,486
  -2,583
  -2,684
  -2,790
  -2,900
  -3,015
  -3,137
  -3,264
  -3,399
  -3,541
  -3,690
  -3,848
  -4,014
Cash from investing activities, $m
  -119
  -1,192
  -1,361
  -1,536
  -1,718
  -1,906
  -2,099
  -2,296
  -2,499
  -2,706
  -2,918
  -3,135
  -3,358
  -3,587
  -3,821
  -4,064
  -4,314
  -4,572
  -4,840
  -5,117
  -5,405
  -5,706
  -6,018
  -6,343
  -6,683
  -7,038
  -7,409
  -7,798
  -8,203
  -8,629
  -9,073
Free cash flow, $m
  219
  -691
  -465
  -230
  40
  345
  685
  1,060
  1,468
  1,910
  2,382
  2,886
  3,420
  3,983
  4,575
  5,195
  5,843
  6,520
  7,225
  7,960
  8,724
  9,518
  10,345
  11,204
  12,098
  13,029
  13,997
  15,005
  16,056
  17,151
  18,292
Issuance/(repayment) of debt, $m
  23
  825
  917
  1,014
  1,109
  1,202
  1,294
  1,384
  1,471
  1,557
  1,640
  1,723
  1,804
  1,885
  1,967
  2,049
  2,132
  2,217
  2,304
  2,395
  2,488
  2,586
  2,688
  2,796
  2,908
  3,026
  3,151
  3,282
  3,421
  3,567
  3,721
Issuance/(repurchase) of shares, $m
  2
  39
  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  
  -127
  864
  917
  1,014
  1,109
  1,202
  1,294
  1,384
  1,471
  1,557
  1,640
  1,723
  1,804
  1,885
  1,967
  2,049
  2,132
  2,217
  2,304
  2,395
  2,488
  2,586
  2,688
  2,796
  2,908
  3,026
  3,151
  3,282
  3,421
  3,567
  3,721
Total cash flow (excl. dividends), $m
  91
  134
  453
  783
  1,148
  1,547
  1,979
  2,444
  2,940
  3,466
  4,023
  4,609
  5,224
  5,868
  6,541
  7,243
  7,975
  8,737
  9,530
  10,354
  11,212
  12,105
  13,033
  14,000
  15,007
  16,055
  17,148
  18,288
  19,477
  20,718
  22,014
Retained Cash Flow (-), $m
  166
  -402
  -450
  -497
  -544
  -590
  -634
  -678
  -721
  -763
  -804
  -845
  -885
  -924
  -964
  -1,004
  -1,045
  -1,087
  -1,130
  -1,174
  -1,220
  -1,268
  -1,318
  -1,371
  -1,426
  -1,484
  -1,545
  -1,609
  -1,677
  -1,749
  -1,825
Prev. year cash balance distribution, $m
 
  229
  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
  3
  286
  605
  958
  1,345
  1,765
  2,218
  2,703
  3,218
  3,764
  4,339
  4,944
  5,577
  6,239
  6,930
  7,650
  8,400
  9,180
  9,992
  10,837
  11,715
  12,629
  13,581
  14,571
  15,603
  16,678
  17,799
  18,969
  20,189
Discount rate, %
 
  7.20
  7.56
  7.94
  8.33
  8.75
  9.19
  9.65
  10.13
  10.64
  11.17
  11.73
  12.31
  12.93
  13.58
  14.26
  14.97
  15.72
  16.50
  17.33
  18.19
  19.10
  20.06
  21.06
  22.11
  23.22
  24.38
  25.60
  26.88
  28.22
  29.64
PV of cash for distribution, $m
 
  0
  3
  228
  439
  630
  794
  926
  1,025
  1,088
  1,116
  1,111
  1,077
  1,017
  938
  845
  744
  640
  537
  441
  353
  276
  210
  156
  112
  79
  54
  35
  23
  14
  8
Current shareholders' claim on cash, %
  100
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2
  99.2

Methanex Corporation produces and supplies methanol in the Asia Pacific, North America, Europe, and South America. It also purchases methanol produced by others under methanol offtake contracts and on the spot market. The company was founded in 1968 and is headquartered in Vancouver, Canada.

FINANCIAL RATIOS  of  Methanex Corporation (MX)

Valuation Ratios
P/E Ratio -329.3
Price to Sales 2.1
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 16.6
Price to Free Cash Flow 27.6
Growth Rates
Sales Growth Rate -10.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -76.5%
Cap. Spend. - 3 Yr. Gr. Rate -29.6%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity 94.1%
Total Debt to Equity 97.5%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital -0.4%
Ret/ On T. Cap. - 3 Yr. Avg. 6.6%
Return On Equity -0.8%
Return On Equity - 3 Yr. Avg. 12.4%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 25.3%
Gross Margin - 3 Yr. Avg. 28.4%
EBITDA Margin 13.7%
EBITDA Margin - 3 Yr. Avg. 20.8%
Operating Margin 1.4%
Oper. Margin - 3 Yr. Avg. 11.2%
Pre-Tax Margin -1.9%
Pre-Tax Margin - 3 Yr. Avg. 9.4%
Net Profit Margin -0.6%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 25.5%
Eff/ Tax Rate - 3 Yr. Avg. 18.1%
Payout Ratio -782.4%

MX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MX stock intrinsic value calculation we used $2700 million for the last fiscal year's total revenue generated by Methanex Corporation. The default revenue input number comes from 2016 income statement of Methanex 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 MX stock valuation model: a) initial revenue growth rate of 20.9% 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 7.2%, whose default value for MX is calculated based on our internal credit rating of Methanex 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 Methanex 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 MX stock the variable cost ratio is equal to 17.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2203 million in the base year in the intrinsic value calculation for MX 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 5.4% for Methanex Corporation.

Corporate tax rate of 27% is the nominal tax rate for Methanex 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 MX 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 MX are equal to 157%.

Life of production assets of 13.8 years is the average useful life of capital assets used in Methanex 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 MX is equal to 12.5%. 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 - $2157 million for Methanex 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 90.56 million for Methanex 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 Methanex Corporation at the current share price and the inputted number of shares is $5.6 billion.


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

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