Intrinsic value of Silver Wheaton Corp. - SLW

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$28.49

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$28.49

 
Intrinsic value

$3.70

 
Up/down potential

-87%

 
Rating

str. sell

 
Value-price divergence* premium content

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

We calculate the intrinsic value of SLW 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 12.9

 

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, %
  37.56
  28.80
  26.42
  24.28
  22.35
  20.62
  19.05
  17.65
  16.38
  15.25
  14.22
  13.30
  12.47
  11.72
  11.05
  10.44
  9.90
  9.41
  8.97
  8.57
  8.22
  7.89
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.25
  6.12
Revenue, $m
  1,205
  1,552
  1,962
  2,438
  2,983
  3,598
  4,284
  5,040
  5,866
  6,760
  7,722
  8,748
  9,839
  10,993
  12,207
  13,482
  14,817
  16,211
  17,665
  19,180
  20,755
  22,394
  24,096
  25,866
  27,705
  29,616
  31,603
  33,669
  35,819
  38,056
  40,385
Variable operating expenses, $m
 
  1,929
  2,439
  3,031
  3,708
  4,473
  5,325
  6,265
  7,291
  8,403
  9,598
  10,874
  12,230
  13,664
  15,174
  16,758
  18,418
  20,151
  21,958
  23,840
  25,799
  27,835
  29,952
  32,151
  34,437
  36,813
  39,283
  41,851
  44,522
  47,303
  50,199
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
  903
  1,929
  2,439
  3,031
  3,708
  4,473
  5,325
  6,265
  7,291
  8,403
  9,598
  10,874
  12,230
  13,664
  15,174
  16,758
  18,418
  20,151
  21,958
  23,840
  25,799
  27,835
  29,952
  32,151
  34,437
  36,813
  39,283
  41,851
  44,522
  47,303
  50,199
Operating income, $m
  301
  -377
  -477
  -593
  -725
  -874
  -1,041
  -1,225
  -1,425
  -1,643
  -1,876
  -2,126
  -2,391
  -2,671
  -2,966
  -3,276
  -3,601
  -3,939
  -4,293
  -4,661
  -5,044
  -5,442
  -5,855
  -6,285
  -6,732
  -7,197
  -7,680
  -8,182
  -8,704
  -9,248
  -9,814
EBITDA, $m
  719
  161
  204
  254
  310
  374
  446
  524
  610
  703
  803
  910
  1,023
  1,143
  1,270
  1,402
  1,541
  1,686
  1,837
  1,995
  2,159
  2,329
  2,506
  2,690
  2,882
  3,080
  3,287
  3,502
  3,726
  3,958
  4,200
Interest expense (income), $m
  32
  56
  73
  92
  115
  141
  170
  203
  239
  278
  320
  366
  415
  467
  522
  579
  640
  703
  770
  839
  911
  986
  1,063
  1,144
  1,229
  1,316
  1,407
  1,501
  1,599
  1,702
  1,808
Earnings before tax, $m
  262
  -434
  -550
  -685
  -840
  -1,015
  -1,211
  -1,427
  -1,664
  -1,921
  -2,197
  -2,492
  -2,806
  -3,138
  -3,488
  -3,855
  -4,240
  -4,643
  -5,062
  -5,499
  -5,954
  -6,427
  -6,919
  -7,430
  -7,961
  -8,513
  -9,086
  -9,683
  -10,303
  -10,949
  -11,621
Tax expense, $m
  -2
  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
  264
  -434
  -550
  -685
  -840
  -1,015
  -1,211
  -1,427
  -1,664
  -1,921
  -2,197
  -2,492
  -2,806
  -3,138
  -3,488
  -3,855
  -4,240
  -4,643
  -5,062
  -5,499
  -5,954
  -6,427
  -6,919
  -7,430
  -7,961
  -8,513
  -9,086
  -9,683
  -10,303
  -10,949
  -11,621

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  168
  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
  8,314
  10,487
  13,257
  16,476
  20,158
  24,314
  28,947
  34,055
  39,635
  45,677
  52,173
  59,111
  66,481
  74,274
  82,481
  91,096
  100,115
  109,536
  119,360
  129,592
  140,238
  151,308
  162,814
  174,771
  187,196
  200,109
  213,534
  227,494
  242,017
  257,132
  272,872
Adjusted assets (=assets-cash), $m
  8,146
  10,487
  13,257
  16,476
  20,158
  24,314
  28,947
  34,055
  39,635
  45,677
  52,173
  59,111
  66,481
  74,274
  82,481
  91,096
  100,115
  109,536
  119,360
  129,592
  140,238
  151,308
  162,814
  174,771
  187,196
  200,109
  213,534
  227,494
  242,017
  257,132
  272,872
Revenue / Adjusted assets
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
  0.148
Average production assets, $m
  7,694
  9,910
  12,528
  15,569
  19,049
  22,976
  27,354
  32,182
  37,454
  43,164
  49,302
  55,859
  62,824
  70,188
  77,943
  86,084
  94,607
  103,509
  112,793
  122,462
  132,522
  142,983
  153,856
  165,155
  176,896
  189,099
  201,785
  214,977
  228,701
  242,985
  257,858
Working capital, $m
  147
  -26
  -33
  -41
  -51
  -61
  -73
  -86
  -100
  -115
  -131
  -149
  -167
  -187
  -208
  -229
  -252
  -276
  -300
  -326
  -353
  -381
  -410
  -440
  -471
  -503
  -537
  -572
  -609
  -647
  -687
Total debt, $m
  1,612
  2,080
  2,637
  3,284
  4,024
  4,859
  5,790
  6,817
  7,939
  9,153
  10,459
  11,853
  13,335
  14,901
  16,551
  18,282
  20,095
  21,989
  23,963
  26,020
  28,160
  30,385
  32,698
  35,101
  37,598
  40,194
  42,892
  45,698
  48,617
  51,656
  54,819
Total liabilities, $m
  1,639
  2,108
  2,665
  3,312
  4,052
  4,887
  5,818
  6,845
  7,967
  9,181
  10,487
  11,881
  13,363
  14,929
  16,579
  18,310
  20,123
  22,017
  23,991
  26,048
  28,188
  30,413
  32,726
  35,129
  37,626
  40,222
  42,920
  45,726
  48,645
  51,684
  54,847
Total equity, $m
  6,674
  8,379
  10,593
  13,164
  16,107
  19,427
  23,128
  27,210
  31,668
  36,496
  41,686
  47,230
  53,119
  59,345
  65,903
  72,786
  79,992
  87,519
  95,369
  103,544
  112,050
  120,895
  130,088
  139,642
  149,569
  159,887
  170,613
  181,768
  193,372
  205,449
  218,024
Total liabilities and equity, $m
  8,313
  10,487
  13,258
  16,476
  20,159
  24,314
  28,946
  34,055
  39,635
  45,677
  52,173
  59,111
  66,482
  74,274
  82,482
  91,096
  100,115
  109,536
  119,360
  129,592
  140,238
  151,308
  162,814
  174,771
  187,195
  200,109
  213,533
  227,494
  242,017
  257,133
  272,871
Debt-to-equity ratio
  0.242
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
  0.250
Adjusted equity ratio
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799
  0.799

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  264
  -434
  -550
  -685
  -840
  -1,015
  -1,211
  -1,427
  -1,664
  -1,921
  -2,197
  -2,492
  -2,806
  -3,138
  -3,488
  -3,855
  -4,240
  -4,643
  -5,062
  -5,499
  -5,954
  -6,427
  -6,919
  -7,430
  -7,961
  -8,513
  -9,086
  -9,683
  -10,303
  -10,949
  -11,621
Depreciation, amort., depletion, $m
  418
  539
  681
  846
  1,035
  1,249
  1,487
  1,749
  2,036
  2,346
  2,679
  3,036
  3,414
  3,815
  4,236
  4,678
  5,142
  5,626
  6,130
  6,656
  7,202
  7,771
  8,362
  8,976
  9,614
  10,277
  10,967
  11,684
  12,429
  13,206
  14,014
Funds from operations, $m
  767
  105
  131
  161
  195
  233
  276
  322
  372
  425
  483
  544
  609
  677
  748
  823
  901
  983
  1,068
  1,156
  1,248
  1,344
  1,443
  1,546
  1,653
  1,764
  1,880
  2,001
  2,126
  2,257
  2,393
Change in working capital, $m
  -22
  -6
  -7
  -8
  -9
  -10
  -12
  -13
  -14
  -15
  -16
  -17
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
  -30
  -31
  -32
  -34
  -35
  -37
  -38
  -40
Cash from operations, $m
  789
  415
  138
  169
  205
  244
  287
  334
  386
  440
  499
  561
  627
  696
  769
  845
  924
  1,007
  1,093
  1,182
  1,275
  1,371
  1,472
  1,576
  1,684
  1,797
  1,914
  2,036
  2,163
  2,295
  2,432
Maintenance CAPEX, $m
  0
  -418
  -539
  -681
  -846
  -1,035
  -1,249
  -1,487
  -1,749
  -2,036
  -2,346
  -2,679
  -3,036
  -3,414
  -3,815
  -4,236
  -4,678
  -5,142
  -5,626
  -6,130
  -6,656
  -7,202
  -7,771
  -8,362
  -8,976
  -9,614
  -10,277
  -10,967
  -11,684
  -12,429
  -13,206
New CAPEX, $m
  -1,081
  -2,216
  -2,618
  -3,042
  -3,480
  -3,927
  -4,378
  -4,828
  -5,272
  -5,710
  -6,138
  -6,556
  -6,965
  -7,364
  -7,755
  -8,141
  -8,523
  -8,903
  -9,284
  -9,669
  -10,060
  -10,461
  -10,873
  -11,299
  -11,741
  -12,203
  -12,686
  -13,192
  -13,724
  -14,284
  -14,873
Cash from investing activities, $m
  -1,088
  -2,634
  -3,157
  -3,723
  -4,326
  -4,962
  -5,627
  -6,315
  -7,021
  -7,746
  -8,484
  -9,235
  -10,001
  -10,778
  -11,570
  -12,377
  -13,201
  -14,045
  -14,910
  -15,799
  -16,716
  -17,663
  -18,644
  -19,661
  -20,717
  -21,817
  -22,963
  -24,159
  -25,408
  -26,713
  -28,079
Free cash flow, $m
  -299
  -2,219
  -3,018
  -3,553
  -4,121
  -4,718
  -5,339
  -5,980
  -6,636
  -7,305
  -7,985
  -8,675
  -9,374
  -10,082
  -10,801
  -11,532
  -12,277
  -13,038
  -13,817
  -14,617
  -15,441
  -16,292
  -17,172
  -18,085
  -19,033
  -20,020
  -21,049
  -22,123
  -23,245
  -24,418
  -25,647
Issuance/(repayment) of debt, $m
  -369
  468
  557
  647
  740
  835
  931
  1,027
  1,121
  1,215
  1,306
  1,395
  1,481
  1,566
  1,650
  1,732
  1,813
  1,894
  1,975
  2,057
  2,140
  2,225
  2,313
  2,403
  2,497
  2,596
  2,698
  2,806
  2,919
  3,038
  3,164
Issuance/(repurchase) of shares, $m
  884
  3,456
  4,675
  5,478
  6,323
  7,204
  8,110
  9,035
  9,972
  10,918
  11,869
  12,824
  13,781
  14,742
  15,709
  16,684
  17,670
  18,672
  19,692
  20,736
  21,807
  22,911
  24,052
  25,235
  26,463
  27,742
  29,077
  30,471
  31,930
  33,457
  35,059
Cash from financing (excl. dividends), $m  
  433
  3,924
  5,232
  6,125
  7,063
  8,039
  9,041
  10,062
  11,093
  12,133
  13,175
  14,219
  15,262
  16,308
  17,359
  18,416
  19,483
  20,566
  21,667
  22,793
  23,947
  25,136
  26,365
  27,638
  28,960
  30,338
  31,775
  33,277
  34,849
  36,495
  38,223
Total cash flow (excl. dividends), $m
  134
  -1,751
  -2,462
  -2,906
  -3,381
  -3,883
  -4,408
  -4,953
  -5,514
  -6,090
  -6,679
  -7,280
  -7,892
  -8,516
  -9,152
  -9,801
  -10,464
  -11,144
  -11,842
  -12,560
  -13,301
  -14,067
  -14,859
  -15,681
  -16,535
  -17,424
  -18,351
  -19,317
  -20,326
  -21,380
  -22,483
Retained Cash Flow (-), $m
  -1,066
  -1,873
  -2,214
  -2,572
  -2,942
  -3,320
  -3,702
  -4,082
  -4,458
  -4,828
  -5,190
  -5,544
  -5,889
  -6,226
  -6,557
  -6,883
  -7,206
  -7,527
  -7,850
  -8,175
  -8,506
  -8,845
  -9,193
  -9,553
  -9,928
  -10,318
  -10,726
  -11,154
  -11,604
  -12,077
  -12,576
Prev. year cash balance distribution, $m
 
  168
  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
  78.4
  60.8
  47.9
  38.3
  31.1
  25.6
  21.3
  17.9
  15.1
  13.0
  11.2
  9.7
  8.5
  7.5
  6.6
  5.9
  5.2
  4.7
  4.2
  3.8
  3.4
  3.1
  2.8
  2.6
  2.3
  2.1
  2.0
  1.8
  1.6
  1.5

Silver Wheaton Corp. operates as a precious metals streaming company worldwide. It has 19 long-term purchase agreements and 1 early deposit long-term purchase agreement associated with silver and gold relating to various 29 mining assets. The company was founded in 2004 and is headquartered in Vancouver, Canada.

FINANCIAL RATIOS  of  Silver Wheaton Corp. (SLW)

Valuation Ratios
P/E Ratio 47.6
Price to Sales 10.4
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 15.9
Price to Free Cash Flow -43.1
Growth Rates
Sales Growth Rate 37.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -55.6%
Cap. Spend. - 3 Yr. Gr. Rate -17%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 24.2%
Total Debt to Equity 24.2%
Interest Coverage 9
Management Effectiveness
Return On Assets 3.7%
Ret/ On Assets - 3 Yr. Avg. 1.9%
Return On Total Capital 3.3%
Ret/ On T. Cap. - 3 Yr. Avg. 1.5%
Return On Equity 4.3%
Return On Equity - 3 Yr. Avg. 1.9%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 36.8%
Gross Margin - 3 Yr. Avg. 42.2%
EBITDA Margin 59.1%
EBITDA Margin - 3 Yr. Avg. 42.2%
Operating Margin 25.1%
Oper. Margin - 3 Yr. Avg. 11.1%
Pre-Tax Margin 21.7%
Pre-Tax Margin - 3 Yr. Avg. 9.4%
Net Profit Margin 21.9%
Net Profit Margin - 3 Yr. Avg. 9.7%
Effective Tax Rate -0.8%
Eff/ Tax Rate - 3 Yr. Avg. 0.4%
Payout Ratio 40.2%

SLW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SLW stock intrinsic value calculation we used $1205 million for the last fiscal year's total revenue generated by Silver Wheaton Corp.. The default revenue input number comes from 2016 income statement of Silver Wheaton Corp.. 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 SLW stock valuation model: a) initial revenue growth rate of 28.8% 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 SLW is calculated based on our internal credit rating of Silver Wheaton Corp., 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 Silver Wheaton Corp..
    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 SLW stock the variable cost ratio is equal to 124.3%.

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 SLW 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 3.5% for Silver Wheaton Corp..

Corporate tax rate of 27% is the nominal tax rate for Silver Wheaton Corp.. 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 SLW 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 SLW are equal to 638.5%.

Life of production assets of 18.4 years is the average useful life of capital assets used in Silver Wheaton Corp. 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 SLW is equal to -1.7%. 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 - $6674 million for Silver Wheaton Corp. - 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 451.077 million for Silver Wheaton Corp. 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 Silver Wheaton Corp. at the current share price and the inputted number of shares is $12.9 billion.


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Stock chart of SLW Financial statements of SLW
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.

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