Intrinsic value of Adecoagro - AGRO

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$10.79

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$10.79

 
Intrinsic value

$146.91

 
Up/down potential

+999%

 
Rating

str. buy

 
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 AGRO 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 1.3

 

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, %
  32.93
  42.40
  38.66
  35.29
  32.26
  29.54
  27.08
  24.88
  22.89
  21.10
  19.49
  18.04
  16.74
  15.56
  14.51
  13.56
  12.70
  11.93
  11.24
  10.61
  10.05
  9.55
  9.09
  8.68
  8.31
  7.98
  7.68
  7.42
  7.17
  6.96
  6.76
Revenue, $m
  989
  1,408
  1,953
  2,642
  3,494
  4,527
  5,753
  7,184
  8,828
  10,691
  12,774
  15,079
  17,602
  20,342
  23,293
  26,450
  29,809
  33,366
  37,115
  41,054
  45,181
  49,495
  53,995
  58,683
  63,562
  68,637
  73,912
  79,393
  85,089
  91,009
  97,163
Variable operating expenses, $m
 
  977
  1,355
  1,834
  2,425
  3,141
  3,992
  4,985
  6,127
  7,419
  8,865
  10,465
  12,216
  14,117
  16,165
  18,356
  20,688
  23,156
  25,758
  28,492
  31,356
  34,349
  37,472
  40,726
  44,112
  47,634
  51,295
  55,099
  59,052
  63,161
  67,431
Fixed operating expenses, $m
 
  138
  142
  145
  149
  153
  157
  160
  164
  169
  173
  177
  182
  186
  191
  196
  200
  205
  211
  216
  221
  227
  232
  238
  244
  250
  257
  263
  270
  276
  283
Total operating expenses, $m
  818
  1,115
  1,497
  1,979
  2,574
  3,294
  4,149
  5,145
  6,291
  7,588
  9,038
  10,642
  12,398
  14,303
  16,356
  18,552
  20,888
  23,361
  25,969
  28,708
  31,577
  34,576
  37,704
  40,964
  44,356
  47,884
  51,552
  55,362
  59,322
  63,437
  67,714
Operating income, $m
  171
  293
  456
  663
  920
  1,232
  1,604
  2,038
  2,537
  3,103
  3,736
  4,437
  5,205
  6,038
  6,937
  7,898
  8,921
  10,004
  11,147
  12,347
  13,604
  14,919
  16,290
  17,719
  19,206
  20,753
  22,360
  24,031
  25,768
  27,573
  29,449
EBITDA, $m
  299
  295
  460
  668
  927
  1,241
  1,615
  2,052
  2,555
  3,124
  3,762
  4,467
  5,240
  6,079
  6,983
  7,951
  8,981
  10,071
  11,221
  12,429
  13,695
  15,018
  16,398
  17,836
  19,333
  20,890
  22,508
  24,190
  25,938
  27,755
  29,643
Interest expense (income), $m
  48
  34
  53
  78
  109
  148
  194
  250
  315
  390
  474
  569
  674
  788
  913
  1,047
  1,190
  1,343
  1,504
  1,674
  1,853
  2,041
  2,236
  2,441
  2,654
  2,875
  3,106
  3,345
  3,594
  3,853
  4,122
Earnings before tax, $m
  13
  259
  403
  586
  811
  1,085
  1,409
  1,788
  2,222
  2,713
  3,262
  3,868
  4,531
  5,250
  6,024
  6,852
  7,731
  8,662
  9,643
  10,673
  11,751
  12,878
  14,054
  15,278
  16,552
  17,877
  19,255
  20,686
  22,174
  23,720
  25,327
Tax expense, $m
  9
  70
  109
  158
  219
  293
  381
  483
  600
  733
  881
  1,044
  1,223
  1,418
  1,627
  1,850
  2,087
  2,339
  2,604
  2,882
  3,173
  3,477
  3,794
  4,125
  4,469
  4,827
  5,199
  5,585
  5,987
  6,404
  6,838
Net income, $m
  2
  189
  294
  427
  592
  792
  1,029
  1,305
  1,622
  1,980
  2,381
  2,824
  3,308
  3,833
  4,398
  5,002
  5,644
  6,323
  7,039
  7,791
  8,578
  9,401
  10,259
  11,153
  12,083
  13,050
  14,056
  15,101
  16,187
  17,315
  18,489

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  159
  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
  1,456
  1,846
  2,559
  3,463
  4,580
  5,933
  7,540
  9,415
  11,570
  14,011
  16,742
  19,762
  23,070
  26,660
  30,528
  34,666
  39,069
  43,730
  48,644
  53,806
  59,215
  64,868
  70,766
  76,911
  83,306
  89,957
  96,870
  104,054
  111,520
  119,278
  127,343
Adjusted assets (=assets-cash), $m
  1,297
  1,846
  2,559
  3,463
  4,580
  5,933
  7,540
  9,415
  11,570
  14,011
  16,742
  19,762
  23,070
  26,660
  30,528
  34,666
  39,069
  43,730
  48,644
  53,806
  59,215
  64,868
  70,766
  76,911
  83,306
  89,957
  96,870
  104,054
  111,520
  119,278
  127,343
Revenue / Adjusted assets
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
  0.763
Average production assets, $m
  10
  14
  20
  26
  35
  45
  58
  72
  88
  107
  128
  151
  176
  203
  233
  265
  298
  334
  371
  411
  452
  495
  540
  587
  636
  686
  739
  794
  851
  910
  972
Working capital, $m
  236
  401
  557
  753
  996
  1,290
  1,640
  2,047
  2,516
  3,047
  3,641
  4,297
  5,017
  5,797
  6,638
  7,538
  8,496
  9,509
  10,578
  11,700
  12,877
  14,106
  15,389
  16,725
  18,115
  19,562
  21,065
  22,627
  24,250
  25,938
  27,691
Total debt, $m
  635
  744
  1,092
  1,533
  2,078
  2,738
  3,522
  4,438
  5,489
  6,680
  8,013
  9,487
  11,101
  12,853
  14,740
  16,760
  18,908
  21,183
  23,581
  26,101
  28,740
  31,499
  34,377
  37,376
  40,496
  43,742
  47,115
  50,621
  54,265
  58,051
  61,987
Total liabilities, $m
  792
  901
  1,249
  1,690
  2,235
  2,895
  3,679
  4,595
  5,646
  6,837
  8,170
  9,644
  11,258
  13,010
  14,897
  16,917
  19,065
  21,340
  23,738
  26,258
  28,897
  31,656
  34,534
  37,533
  40,653
  43,899
  47,272
  50,778
  54,422
  58,208
  62,144
Total equity, $m
  664
  945
  1,310
  1,773
  2,345
  3,038
  3,860
  4,821
  5,924
  7,174
  8,572
  10,118
  11,812
  13,650
  15,630
  17,749
  20,003
  22,390
  24,906
  27,549
  30,318
  33,213
  36,232
  39,378
  42,653
  46,058
  49,597
  53,276
  57,098
  61,071
  65,200
Total liabilities and equity, $m
  1,456
  1,846
  2,559
  3,463
  4,580
  5,933
  7,539
  9,416
  11,570
  14,011
  16,742
  19,762
  23,070
  26,660
  30,527
  34,666
  39,068
  43,730
  48,644
  53,807
  59,215
  64,869
  70,766
  76,911
  83,306
  89,957
  96,869
  104,054
  111,520
  119,279
  127,344
Debt-to-equity ratio
  0.956
  0.790
  0.830
  0.860
  0.890
  0.900
  0.910
  0.920
  0.930
  0.930
  0.930
  0.940
  0.940
  0.940
  0.940
  0.940
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
Adjusted equity ratio
  0.389
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2
  189
  294
  427
  592
  792
  1,029
  1,305
  1,622
  1,980
  2,381
  2,824
  3,308
  3,833
  4,398
  5,002
  5,644
  6,323
  7,039
  7,791
  8,578
  9,401
  10,259
  11,153
  12,083
  13,050
  14,056
  15,101
  16,187
  17,315
  18,489
Depreciation, amort., depletion, $m
  128
  3
  4
  5
  7
  9
  12
  14
  18
  21
  26
  30
  35
  41
  47
  53
  60
  67
  74
  82
  90
  99
  108
  117
  127
  137
  148
  159
  170
  182
  194
Funds from operations, $m
  202
  192
  298
  433
  599
  801
  1,040
  1,319
  1,640
  2,002
  2,407
  2,854
  3,343
  3,873
  4,444
  5,055
  5,703
  6,390
  7,113
  7,873
  8,669
  9,500
  10,367
  11,270
  12,210
  13,188
  14,204
  15,260
  16,357
  17,497
  18,683
Change in working capital, $m
  -53
  120
  155
  196
  243
  294
  349
  408
  469
  531
  594
  657
  719
  781
  841
  900
  957
  1,014
  1,069
  1,123
  1,176
  1,229
  1,283
  1,336
  1,391
  1,446
  1,503
  1,562
  1,623
  1,687
  1,754
Cash from operations, $m
  255
  79
  143
  236
  356
  507
  691
  912
  1,171
  1,471
  1,813
  2,197
  2,624
  3,093
  3,603
  4,155
  4,746
  5,376
  6,045
  6,750
  7,492
  8,271
  9,085
  9,934
  10,820
  11,742
  12,700
  13,697
  14,734
  15,810
  16,929
Maintenance CAPEX, $m
  0
  -2
  -3
  -4
  -5
  -7
  -9
  -12
  -14
  -18
  -21
  -26
  -30
  -35
  -41
  -47
  -53
  -60
  -67
  -74
  -82
  -90
  -99
  -108
  -117
  -127
  -137
  -148
  -159
  -170
  -182
New CAPEX, $m
  -135
  -4
  -5
  -7
  -9
  -10
  -12
  -14
  -16
  -19
  -21
  -23
  -25
  -27
  -30
  -32
  -34
  -36
  -37
  -39
  -41
  -43
  -45
  -47
  -49
  -51
  -53
  -55
  -57
  -59
  -62
Cash from investing activities, $m
  -122
  -6
  -8
  -11
  -14
  -17
  -21
  -26
  -30
  -37
  -42
  -49
  -55
  -62
  -71
  -79
  -87
  -96
  -104
  -113
  -123
  -133
  -144
  -155
  -166
  -178
  -190
  -203
  -216
  -229
  -244
Free cash flow, $m
  133
  73
  135
  226
  343
  490
  670
  886
  1,140
  1,435
  1,771
  2,148
  2,568
  3,030
  3,533
  4,077
  4,660
  5,281
  5,941
  6,637
  7,369
  8,137
  8,941
  9,779
  10,654
  11,564
  12,510
  13,495
  14,518
  15,581
  16,686
Issuance/(repayment) of debt, $m
  -125
  268
  348
  441
  545
  660
  784
  915
  1,052
  1,191
  1,333
  1,474
  1,614
  1,752
  1,887
  2,019
  2,149
  2,275
  2,398
  2,519
  2,639
  2,759
  2,878
  2,999
  3,121
  3,245
  3,374
  3,506
  3,643
  3,786
  3,936
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  
  -182
  268
  348
  441
  545
  660
  784
  915
  1,052
  1,191
  1,333
  1,474
  1,614
  1,752
  1,887
  2,019
  2,149
  2,275
  2,398
  2,519
  2,639
  2,759
  2,878
  2,999
  3,121
  3,245
  3,374
  3,506
  3,643
  3,786
  3,936
Total cash flow (excl. dividends), $m
  -40
  341
  483
  666
  888
  1,150
  1,454
  1,801
  2,192
  2,626
  3,103
  3,622
  4,182
  4,782
  5,420
  6,096
  6,808
  7,556
  8,339
  9,156
  10,009
  10,896
  11,819
  12,778
  13,774
  14,809
  15,884
  17,001
  18,161
  19,367
  20,622
Retained Cash Flow (-), $m
  -144
  -281
  -365
  -462
  -572
  -693
  -823
  -960
  -1,103
  -1,250
  -1,398
  -1,546
  -1,693
  -1,838
  -1,980
  -2,119
  -2,254
  -2,386
  -2,516
  -2,643
  -2,769
  -2,894
  -3,020
  -3,146
  -3,274
  -3,405
  -3,540
  -3,678
  -3,822
  -3,972
  -4,129
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
 
  60
  117
  204
  316
  457
  631
  841
  1,088
  1,376
  1,705
  2,076
  2,489
  2,944
  3,440
  3,977
  4,554
  5,169
  5,823
  6,513
  7,239
  8,001
  8,799
  9,632
  10,500
  11,404
  12,345
  13,322
  14,339
  15,395
  16,492
Discount rate, %
 
  4.60
  4.83
  5.07
  5.33
  5.59
  5.87
  6.16
  6.47
  6.80
  7.14
  7.49
  7.87
  8.26
  8.67
  9.11
  9.56
  10.04
  10.54
  11.07
  11.62
  12.21
  12.82
  13.46
  14.13
  14.84
  15.58
  16.36
  17.17
  18.03
  18.93
PV of cash for distribution, $m
 
  57
  107
  176
  257
  348
  448
  553
  659
  761
  856
  938
  1,003
  1,049
  1,074
  1,076
  1,056
  1,016
  958
  886
  803
  713
  620
  528
  440
  359
  286
  223
  170
  126
  91
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

Adecoagro S.A., an agricultural company, engages in farming, energy production, and land transformation activities. It operates through Farming; Sugar, Ethanol, and Energy; and Land Transformation businesses. The company is involved in planting, harvesting, and selling grains, oilseeds, and fibers, including wheat, corn, soybeans, cotton, sunflowers, and others; and providing grain warehousing/conditioning, and handling and drying services to third parties. It also engages in planting, harvesting, processing, and marketing rice; and producing and selling raw milk and other dairy products. In addition, the company is involved in the cultivation and processing of sugar and ethanol, as well as cogeneration of electricity from sugarcane bagasse; and identification and acquisition of underdeveloped and undermanaged farmland, and realization of value through the strategic disposition of assets. As of December 31, 2015, it owned a total of 246,139 hectares comprising 19 farms in Argentina, 11 farms in Brazil, and 1 farm in Uruguay; 3 rice processing facilities in Argentina; 2 dairy facilities with approximately 6,752 milking cows in Argentina; 11 grain and rice conditioning and storage plants in Argentina; and 3 sugar and ethanol mills in Brazil with a sugarcane crushing capacity of 10.2 million tons, as well as had a total 232 MW of installed cogeneration capacity. Adecoagro S.A. was founded in 2002 and is based in Luxembourg.

FINANCIAL RATIOS  of  Adecoagro (AGRO)

Valuation Ratios
P/E Ratio 655.4
Price to Sales 1.3
Price to Book 2
Price to Tangible Book
Price to Cash Flow 5.1
Price to Free Cash Flow 10.9
Growth Rates
Sales Growth Rate 32.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -8.8%
Cap. Spend. - 3 Yr. Gr. Rate -9.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 64.8%
Total Debt to Equity 95.6%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.2%
Ret/ On Assets - 3 Yr. Avg. 0.9%
Return On Total Capital 0.2%
Ret/ On T. Cap. - 3 Yr. Avg. -0%
Return On Equity 0.3%
Return On Equity - 3 Yr. Avg. -0.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 31.3%
Gross Margin - 3 Yr. Avg. 28%
EBITDA Margin 19.1%
EBITDA Margin - 3 Yr. Avg. 17.8%
Operating Margin 17.3%
Oper. Margin - 3 Yr. Avg. 14%
Pre-Tax Margin 1.3%
Pre-Tax Margin - 3 Yr. Avg. 0.3%
Net Profit Margin 0.2%
Net Profit Margin - 3 Yr. Avg. -0.1%
Effective Tax Rate 69.2%
Eff/ Tax Rate - 3 Yr. Avg. 71.2%
Payout Ratio 0%

AGRO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AGRO stock intrinsic value calculation we used $989 million for the last fiscal year's total revenue generated by Adecoagro. The default revenue input number comes from 2016 income statement of Adecoagro. 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 AGRO stock valuation model: a) initial revenue growth rate of 42.4% 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 4.6%, whose default value for AGRO is calculated based on our internal credit rating of Adecoagro, 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 Adecoagro.
    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 AGRO stock the variable cost ratio is equal to 69.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $135 million in the base year in the intrinsic value calculation for AGRO 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 7.1% for Adecoagro.

Corporate tax rate of 27% is the nominal tax rate for Adecoagro. 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 AGRO 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 AGRO are equal to 1%.

Life of production assets of 0.1 years is the average useful life of capital assets used in Adecoagro 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 AGRO is equal to 28.5%. 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 - $664 million for Adecoagro - 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 121.291 million for Adecoagro 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 Adecoagro at the current share price and the inputted number of shares is $1.3 billion.


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COMPANY NEWS

▶ Top Ranked Value Stocks to Buy for April 17th   [Apr-17-17 10:38AM  Zacks]
▶ Adecoagro SA Value Analysis (NYSE:AGRO) : January 5, 2017   [Jan-05-17 10:34AM  Capital Cube]
▶ Adecoagro Appoints Jim Anderson to Board of Directors   [Dec-29-16 04:23PM  PR Newswire]
▶ ETFs with exposure to Adecoagro SA : December 12, 2016   [Dec-12-16 01:56PM  Capital Cube]
▶ Is Adecoagro SA (AGRO) A Good Stock To Buy?   [Nov-30-16 04:35PM  at Insider Monkey]
▶ Adecoagro Announces Approval of Share Repurchase Program   [Sep-26-16 06:48PM  PR Newswire]
▶ ADECOAGRO S.A. Financials   [01:04PM  EDGAR Online Financials]
▶ Argentina Summit Panel on Agribusiness Outlook   [Apr-06-16 02:00PM  at Bloomberg]
▶ Billionaire George Soros Top Long-Term Holdings   [Apr-01-16 04:54PM  at Insider Monkey]
▶ AGR to provide consultancy manpower to Lundin Norway   [Mar-29-16 01:52AM  at noodls]
▶ Proxy Card for AGM 2016   [02:52PM  at noodls]
▶ Stocks Stage Positive Reversal; Picks Of Buffett, Soros, Danoff Up   [Jan-12-16 04:28PM  at Investor's Business Daily]
▶ Do Hedge Funds Love Adecoagro SA (AGRO)?   [Nov-29  04:45PM  at Insider Monkey]
▶ Do Hedge Funds Love Mantech International Corp (MANT)?   [Nov-24  09:06AM  at Insider Monkey]
▶ 6 Stocks George Soros Loves in Brazil and Argentina   [Aug-19  09:47AM  at TheStreet]
Stock chart of AGRO Financial statements of AGRO
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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