Intrinsic value of Adecoagro - AGRO

Previous Close

$10.45

  Intrinsic Value

$55.50

stock screener

  Rating & Target

str. buy

+431%

  Value-price divergence*

-34%

Previous close

$10.45

 
Intrinsic value

$55.50

 
Up/down potential

+431%

 
Rating

str. buy

 
Value-price divergence*

-34%

*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
  32.90
  30.11
  27.60
  25.34
  23.31
  21.47
  19.83
  18.34
  17.01
  15.81
  14.73
  13.76
  12.88
  12.09
  11.38
  10.74
  10.17
  9.65
  9.19
  8.77
  8.39
  8.05
  7.75
  7.47
  7.23
  7.00
  6.80
  6.62
  6.46
  6.31
Revenue, $m
  989
  1,314
  1,710
  2,182
  2,735
  3,372
  4,097
  4,909
  5,809
  6,798
  7,872
  9,032
  10,274
  11,597
  13,000
  14,479
  16,035
  17,666
  19,371
  21,151
  23,006
  24,936
  26,944
  29,032
  31,201
  33,456
  35,799
  38,234
  40,766
  43,399
  46,140
Variable operating expenses, $m
 
  912
  1,186
  1,513
  1,896
  2,337
  2,839
  3,402
  4,025
  4,710
  5,454
  6,256
  7,117
  8,033
  9,005
  10,030
  11,107
  12,237
  13,418
  14,651
  15,936
  17,273
  18,664
  20,110
  21,613
  23,174
  24,797
  26,484
  28,238
  30,062
  31,960
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
  1,050
  1,328
  1,658
  2,045
  2,490
  2,996
  3,562
  4,189
  4,879
  5,627
  6,433
  7,299
  8,219
  9,196
  10,226
  11,307
  12,442
  13,629
  14,867
  16,157
  17,500
  18,896
  20,348
  21,857
  23,424
  25,054
  26,747
  28,508
  30,338
  32,243
Operating income, $m
  171
  264
  382
  524
  690
  882
  1,101
  1,347
  1,620
  1,919
  2,245
  2,598
  2,976
  3,378
  3,804
  4,254
  4,727
  5,224
  5,742
  6,284
  6,849
  7,437
  8,048
  8,684
  9,344
  10,031
  10,745
  11,487
  12,258
  13,061
  13,896
EBITDA, $m
  299
  320
  455
  616
  805
  1,023
  1,272
  1,551
  1,861
  2,202
  2,572
  2,972
  3,401
  3,858
  4,342
  4,854
  5,391
  5,955
  6,544
  7,160
  7,801
  8,469
  9,163
  9,886
  10,636
  11,416
  12,227
  13,070
  13,946
  14,858
  15,806
Interest expense (income), $m
  48
  34
  49
  67
  88
  113
  142
  175
  212
  253
  298
  346
  399
  455
  515
  579
  646
  717
  791
  869
  949
  1,034
  1,121
  1,212
  1,307
  1,406
  1,508
  1,614
  1,725
  1,840
  1,960
Earnings before tax, $m
  13
  230
  334
  457
  602
  769
  959
  1,172
  1,408
  1,666
  1,948
  2,252
  2,577
  2,923
  3,289
  3,675
  4,081
  4,507
  4,951
  5,416
  5,899
  6,403
  6,927
  7,471
  8,037
  8,625
  9,237
  9,872
  10,533
  11,221
  11,937
Tax expense, $m
  9
  62
  90
  123
  163
  208
  259
  316
  380
  450
  526
  608
  696
  789
  888
  992
  1,102
  1,217
  1,337
  1,462
  1,593
  1,729
  1,870
  2,017
  2,170
  2,329
  2,494
  2,666
  2,844
  3,030
  3,223
Net income, $m
  2
  168
  244
  334
  440
  562
  700
  856
  1,028
  1,217
  1,422
  1,644
  1,881
  2,133
  2,401
  2,683
  2,979
  3,290
  3,615
  3,953
  4,307
  4,674
  5,057
  5,454
  5,867
  6,297
  6,743
  7,207
  7,689
  8,191
  8,714

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
  1,723
  2,241
  2,860
  3,585
  4,420
  5,369
  6,434
  7,614
  8,909
  10,318
  11,837
  13,465
  15,200
  17,038
  18,977
  21,016
  23,153
  25,388
  27,721
  30,152
  32,682
  35,314
  38,050
  40,893
  43,848
  46,918
  50,110
  53,428
  56,880
  60,471
Adjusted assets (=assets-cash), $m
  1,297
  1,723
  2,241
  2,860
  3,585
  4,420
  5,369
  6,434
  7,614
  8,909
  10,318
  11,837
  13,465
  15,200
  17,038
  18,977
  21,016
  23,153
  25,388
  27,721
  30,152
  32,682
  35,314
  38,050
  40,893
  43,848
  46,918
  50,110
  53,428
  56,880
  60,471
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
  409
  544
  708
  903
  1,132
  1,396
  1,696
  2,032
  2,405
  2,814
  3,259
  3,739
  4,253
  4,801
  5,382
  5,994
  6,639
  7,314
  8,020
  8,756
  9,524
  10,324
  11,155
  12,019
  12,917
  13,851
  14,821
  15,829
  16,877
  17,967
  19,102
Working capital, $m
  236
  375
  487
  622
  779
  961
  1,168
  1,399
  1,656
  1,937
  2,244
  2,574
  2,928
  3,305
  3,705
  4,127
  4,570
  5,035
  5,521
  6,028
  6,557
  7,107
  7,679
  8,274
  8,892
  9,535
  10,203
  10,897
  11,618
  12,369
  13,150
Total debt, $m
  635
  684
  937
  1,239
  1,592
  2,000
  2,463
  2,983
  3,559
  4,191
  4,878
  5,620
  6,414
  7,260
  8,157
  9,104
  10,099
  11,142
  12,232
  13,371
  14,557
  15,792
  17,076
  18,411
  19,799
  21,241
  22,739
  24,297
  25,916
  27,600
  29,353
Total liabilities, $m
  792
  841
  1,094
  1,396
  1,749
  2,157
  2,620
  3,140
  3,716
  4,348
  5,035
  5,777
  6,571
  7,417
  8,314
  9,261
  10,256
  11,299
  12,389
  13,528
  14,714
  15,949
  17,233
  18,568
  19,956
  21,398
  22,896
  24,454
  26,073
  27,757
  29,510
Total equity, $m
  664
  882
  1,148
  1,464
  1,835
  2,263
  2,749
  3,294
  3,898
  4,561
  5,283
  6,061
  6,894
  7,782
  8,723
  9,716
  10,760
  11,854
  12,999
  14,193
  15,438
  16,733
  18,081
  19,481
  20,937
  22,450
  24,022
  25,656
  27,355
  29,123
  30,961
Total liabilities and equity, $m
  1,456
  1,723
  2,242
  2,860
  3,584
  4,420
  5,369
  6,434
  7,614
  8,909
  10,318
  11,838
  13,465
  15,199
  17,037
  18,977
  21,016
  23,153
  25,388
  27,721
  30,152
  32,682
  35,314
  38,049
  40,893
  43,848
  46,918
  50,110
  53,428
  56,880
  60,471
Debt-to-equity ratio
  0.956
  0.780
  0.820
  0.850
  0.870
  0.880
  0.900
  0.910
  0.910
  0.920
  0.920
  0.930
  0.930
  0.930
  0.940
  0.940
  0.940
  0.940
  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
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
  168
  244
  334
  440
  562
  700
  856
  1,028
  1,217
  1,422
  1,644
  1,881
  2,133
  2,401
  2,683
  2,979
  3,290
  3,615
  3,953
  4,307
  4,674
  5,057
  5,454
  5,867
  6,297
  6,743
  7,207
  7,689
  8,191
  8,714
Depreciation, amort., depletion, $m
  128
  56
  72
  92
  115
  141
  171
  205
  242
  283
  327
  374
  425
  480
  538
  599
  664
  731
  802
  876
  952
  1,032
  1,115
  1,202
  1,292
  1,385
  1,482
  1,583
  1,688
  1,797
  1,910
Funds from operations, $m
  202
  224
  316
  426
  554
  703
  871
  1,060
  1,269
  1,499
  1,749
  2,018
  2,306
  2,614
  2,939
  3,282
  3,643
  4,021
  4,417
  4,829
  5,259
  5,707
  6,172
  6,656
  7,159
  7,682
  8,225
  8,790
  9,377
  9,988
  10,624
Change in working capital, $m
  -53
  93
  113
  135
  158
  182
  206
  231
  257
  282
  306
  330
  354
  377
  400
  422
  443
  465
  486
  507
  529
  550
  572
  595
  618
  643
  668
  694
  722
  751
  781
Cash from operations, $m
  255
  131
  203
  291
  397
  521
  665
  829
  1,013
  1,218
  1,443
  1,688
  1,952
  2,236
  2,539
  2,861
  3,200
  3,556
  3,931
  4,322
  4,730
  5,156
  5,600
  6,061
  6,541
  7,039
  7,557
  8,096
  8,655
  9,237
  9,843
Maintenance CAPEX, $m
  0
  -41
  -54
  -71
  -90
  -113
  -140
  -170
  -203
  -241
  -281
  -326
  -374
  -425
  -480
  -538
  -599
  -664
  -731
  -802
  -876
  -952
  -1,032
  -1,115
  -1,202
  -1,292
  -1,385
  -1,482
  -1,583
  -1,688
  -1,797
New CAPEX, $m
  -135
  -135
  -164
  -195
  -229
  -264
  -300
  -336
  -373
  -409
  -445
  -480
  -514
  -548
  -581
  -613
  -644
  -675
  -706
  -737
  -768
  -799
  -831
  -864
  -898
  -933
  -970
  -1,008
  -1,048
  -1,090
  -1,134
Cash from investing activities, $m
  -122
  -176
  -218
  -266
  -319
  -377
  -440
  -506
  -576
  -650
  -726
  -806
  -888
  -973
  -1,061
  -1,151
  -1,243
  -1,339
  -1,437
  -1,539
  -1,644
  -1,751
  -1,863
  -1,979
  -2,100
  -2,225
  -2,355
  -2,490
  -2,631
  -2,778
  -2,931
Free cash flow, $m
  133
  -45
  -15
  25
  77
  144
  225
  323
  437
  568
  716
  882
  1,064
  1,263
  1,479
  1,710
  1,956
  2,217
  2,493
  2,783
  3,087
  3,405
  3,736
  4,081
  4,441
  4,814
  5,202
  5,605
  6,024
  6,459
  6,912
Issuance/(repayment) of debt, $m
  -125
  208
  253
  302
  354
  408
  463
  520
  576
  632
  687
  742
  795
  846
  897
  946
  995
  1,043
  1,091
  1,138
  1,186
  1,235
  1,284
  1,335
  1,388
  1,442
  1,498
  1,558
  1,619
  1,684
  1,753
Issuance/(repurchase) of shares, $m
  0
  50
  22
  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
  258
  275
  302
  354
  408
  463
  520
  576
  632
  687
  742
  795
  846
  897
  946
  995
  1,043
  1,091
  1,138
  1,186
  1,235
  1,284
  1,335
  1,388
  1,442
  1,498
  1,558
  1,619
  1,684
  1,753
Total cash flow (excl. dividends), $m
  -40
  213
  260
  327
  431
  551
  688
  842
  1,013
  1,200
  1,404
  1,623
  1,859
  2,110
  2,376
  2,656
  2,951
  3,260
  3,584
  3,921
  4,273
  4,639
  5,020
  5,416
  5,828
  6,256
  6,701
  7,163
  7,644
  8,144
  8,664
Retained Cash Flow (-), $m
  -144
  -218
  -266
  -317
  -371
  -428
  -486
  -545
  -604
  -663
  -721
  -778
  -834
  -888
  -941
  -993
  -1,044
  -1,094
  -1,144
  -1,194
  -1,245
  -1,296
  -1,347
  -1,401
  -1,456
  -1,513
  -1,572
  -1,634
  -1,699
  -1,767
  -1,839
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
 
  -5
  -6
  10
  60
  124
  202
  297
  408
  537
  683
  845
  1,025
  1,222
  1,435
  1,663
  1,907
  2,166
  2,440
  2,727
  3,029
  3,344
  3,673
  4,016
  4,372
  4,743
  5,128
  5,529
  5,945
  6,377
  6,826
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
 
  -5
  -5
  9
  49
  94
  144
  195
  247
  297
  343
  382
  413
  435
  448
  450
  442
  426
  402
  371
  336
  298
  259
  220
  183
  149
  119
  93
  70
  52
  38
Current shareholders' claim on cash, %
  100
  96.2
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9
  94.9

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 633
Price to Sales 1.3
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 5
Price to Free Cash Flow 10.5
Growth Rates
Sales Growth Rate 32.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -5.6%
Cap. Spend. - 3 Yr. Gr. Rate -9.9%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
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. 21.4%
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 32.9% 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 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 41.4%.

Life of production assets of 10 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 120.232 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

▶ ETFs with exposure to Adecoagro SA : June 22, 2017   [Jun-22-17 03:16PM  Capital Cube]
▶ Adecoagro announces filing of Annual Report   [Jun-12-17 05:48PM  PR Newswire]
▶ Adecoagro Sees Opportunity Selling Corn, Rice to Mexico   [May-17-17 10:23PM  Bloomberg Video]
▶ Adecoagro posts 1Q profit   [May-15-17 07:47PM  Associated Press]
▶ Adecoagro SA Value Analysis (NYSE:AGRO) : May 12, 2017   [May-12-17 04:52PM  Capital Cube]
▶ Top Ranked Value Stocks to Buy for May 1st   [May-01-17 09:50AM  Zacks]
▶ 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]
Stock chart of AGRO Financial statements of AGRO Annual reports 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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