Intrinsic value of Agrium - AGU

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$95.00

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$95.00

 
Intrinsic value

$54.85

 
Up/down potential

-42%

 
Rating

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 AGU 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 13.0

 

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, %
  -7.64
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  13,665
  13,938
  14,259
  14,625
  15,037
  15,493
  15,993
  16,537
  17,127
  17,762
  18,444
  19,173
  19,951
  20,780
  21,660
  22,595
  23,585
  24,633
  25,741
  26,913
  28,149
  29,454
  30,830
  32,280
  33,809
  35,418
  37,113
  38,896
  40,773
  42,748
  44,825
Variable operating expenses, $m
 
  7,550
  7,719
  7,912
  8,129
  8,369
  8,632
  8,919
  9,230
  9,564
  9,923
  10,098
  10,508
  10,944
  11,408
  11,900
  12,421
  12,973
  13,557
  14,174
  14,825
  15,512
  16,237
  17,001
  17,806
  18,654
  19,546
  20,486
  21,474
  22,514
  23,608
Fixed operating expenses, $m
 
  5,427
  5,563
  5,702
  5,845
  5,991
  6,141
  6,294
  6,451
  6,613
  6,778
  6,947
  7,121
  7,299
  7,482
  7,669
  7,860
  8,057
  8,258
  8,465
  8,676
  8,893
  9,116
  9,344
  9,577
  9,817
  10,062
  10,314
  10,571
  10,836
  11,107
Total operating expenses, $m
  12,567
  12,977
  13,282
  13,614
  13,974
  14,360
  14,773
  15,213
  15,681
  16,177
  16,701
  17,045
  17,629
  18,243
  18,890
  19,569
  20,281
  21,030
  21,815
  22,639
  23,501
  24,405
  25,353
  26,345
  27,383
  28,471
  29,608
  30,800
  32,045
  33,350
  34,715
Operating income, $m
  1,098
  961
  977
  1,011
  1,063
  1,133
  1,220
  1,324
  1,446
  1,585
  1,743
  2,128
  2,322
  2,537
  2,771
  3,026
  3,303
  3,603
  3,926
  4,274
  4,647
  5,048
  5,477
  5,936
  6,425
  6,948
  7,505
  8,097
  8,728
  9,398
  10,110
EBITDA, $m
  1,630
  1,593
  1,619
  1,664
  1,729
  1,812
  1,915
  2,035
  2,175
  2,334
  2,512
  2,710
  2,928
  3,167
  3,428
  3,712
  4,019
  4,350
  4,707
  5,090
  5,502
  5,942
  6,413
  6,915
  7,451
  8,023
  8,631
  9,278
  9,965
  10,696
  11,471
Interest expense (income), $m
  272
  244
  255
  267
  282
  298
  316
  336
  357
  381
  406
  433
  461
  492
  525
  560
  596
  635
  677
  721
  767
  816
  867
  921
  979
  1,039
  1,103
  1,169
  1,240
  1,314
  1,392
Earnings before tax, $m
  820
  716
  722
  744
  781
  835
  904
  988
  1,089
  1,205
  1,337
  1,695
  1,861
  2,044
  2,246
  2,467
  2,707
  2,967
  3,249
  3,553
  3,881
  4,232
  4,610
  5,014
  5,447
  5,909
  6,402
  6,928
  7,488
  8,084
  8,719
Tax expense, $m
  224
  193
  195
  201
  211
  225
  244
  267
  294
  325
  361
  458
  502
  552
  606
  666
  731
  801
  877
  959
  1,048
  1,143
  1,245
  1,354
  1,471
  1,595
  1,729
  1,871
  2,022
  2,183
  2,354
Net income, $m
  592
  523
  527
  543
  570
  609
  660
  721
  795
  879
  976
  1,237
  1,359
  1,492
  1,640
  1,801
  1,976
  2,166
  2,372
  2,594
  2,833
  3,090
  3,365
  3,660
  3,976
  4,313
  4,673
  5,057
  5,466
  5,902
  6,365

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  412
  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
  16,963
  16,874
  17,263
  17,706
  18,204
  18,756
  19,362
  20,021
  20,735
  21,504
  22,329
  23,212
  24,154
  25,157
  26,223
  27,354
  28,553
  29,822
  31,164
  32,582
  34,079
  35,659
  37,324
  39,080
  40,930
  42,879
  44,931
  47,090
  49,362
  51,753
  54,268
Adjusted assets (=assets-cash), $m
  16,551
  16,874
  17,263
  17,706
  18,204
  18,756
  19,362
  20,021
  20,735
  21,504
  22,329
  23,212
  24,154
  25,157
  26,223
  27,354
  28,553
  29,822
  31,164
  32,582
  34,079
  35,659
  37,324
  39,080
  40,930
  42,879
  44,931
  47,090
  49,362
  51,753
  54,268
Revenue / Adjusted assets
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
  0.826
Average production assets, $m
  7,175
  7,318
  7,486
  7,678
  7,894
  8,134
  8,396
  8,682
  8,992
  9,325
  9,683
  10,066
  10,474
  10,909
  11,372
  11,862
  12,382
  12,932
  13,514
  14,129
  14,778
  15,463
  16,186
  16,947
  17,749
  18,594
  19,484
  20,421
  21,406
  22,443
  23,533
Working capital, $m
  1,409
  1,742
  1,782
  1,828
  1,880
  1,937
  1,999
  2,067
  2,141
  2,220
  2,305
  2,397
  2,494
  2,597
  2,708
  2,824
  2,948
  3,079
  3,218
  3,364
  3,519
  3,682
  3,854
  4,035
  4,226
  4,427
  4,639
  4,862
  5,097
  5,344
  5,603
Total debt, $m
  5,112
  4,898
  5,142
  5,420
  5,732
  6,078
  6,458
  6,871
  7,319
  7,801
  8,318
  8,872
  9,463
  10,092
  10,760
  11,469
  12,221
  13,016
  13,858
  14,747
  15,685
  16,676
  17,720
  18,821
  19,981
  21,203
  22,490
  23,843
  25,268
  26,767
  28,344
Total liabilities, $m
  10,794
  10,580
  10,824
  11,102
  11,414
  11,760
  12,140
  12,553
  13,001
  13,483
  14,000
  14,554
  15,145
  15,774
  16,442
  17,151
  17,903
  18,698
  19,540
  20,429
  21,367
  22,358
  23,402
  24,503
  25,663
  26,885
  28,172
  29,525
  30,950
  32,449
  34,026
Total equity, $m
  6,169
  6,294
  6,439
  6,604
  6,790
  6,996
  7,222
  7,468
  7,734
  8,021
  8,329
  8,658
  9,009
  9,384
  9,781
  10,203
  10,650
  11,124
  11,624
  12,153
  12,711
  13,301
  13,922
  14,577
  15,267
  15,994
  16,759
  17,565
  18,412
  19,304
  20,242
Total liabilities and equity, $m
  16,963
  16,874
  17,263
  17,706
  18,204
  18,756
  19,362
  20,021
  20,735
  21,504
  22,329
  23,212
  24,154
  25,158
  26,223
  27,354
  28,553
  29,822
  31,164
  32,582
  34,078
  35,659
  37,324
  39,080
  40,930
  42,879
  44,931
  47,090
  49,362
  51,753
  54,268
Debt-to-equity ratio
  0.829
  0.780
  0.800
  0.820
  0.840
  0.870
  0.890
  0.920
  0.950
  0.970
  1.000
  1.020
  1.050
  1.080
  1.100
  1.120
  1.150
  1.170
  1.190
  1.210
  1.230
  1.250
  1.270
  1.290
  1.310
  1.330
  1.340
  1.360
  1.370
  1.390
  1.400
Adjusted equity ratio
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  592
  523
  527
  543
  570
  609
  660
  721
  795
  879
  976
  1,237
  1,359
  1,492
  1,640
  1,801
  1,976
  2,166
  2,372
  2,594
  2,833
  3,090
  3,365
  3,660
  3,976
  4,313
  4,673
  5,057
  5,466
  5,902
  6,365
Depreciation, amort., depletion, $m
  532
  632
  642
  653
  666
  680
  695
  711
  729
  749
  769
  582
  605
  631
  657
  686
  716
  748
  781
  817
  854
  894
  936
  980
  1,026
  1,075
  1,126
  1,180
  1,237
  1,297
  1,360
Funds from operations, $m
  1,849
  1,155
  1,169
  1,196
  1,236
  1,289
  1,355
  1,433
  1,524
  1,628
  1,745
  1,819
  1,964
  2,123
  2,297
  2,486
  2,692
  2,914
  3,153
  3,410
  3,687
  3,984
  4,301
  4,640
  5,002
  5,388
  5,800
  6,238
  6,704
  7,199
  7,725
Change in working capital, $m
  182
  34
  40
  46
  51
  57
  63
  68
  74
  79
  85
  91
  97
  104
  110
  117
  124
  131
  139
  146
  155
  163
  172
  181
  191
  201
  212
  223
  235
  247
  260
Cash from operations, $m
  1,667
  1,331
  1,129
  1,150
  1,185
  1,232
  1,292
  1,365
  1,450
  1,548
  1,660
  1,728
  1,867
  2,019
  2,187
  2,369
  2,568
  2,783
  3,014
  3,264
  3,532
  3,820
  4,129
  4,459
  4,811
  5,187
  5,588
  6,015
  6,469
  6,952
  7,465
Maintenance CAPEX, $m
  0
  -415
  -423
  -433
  -444
  -456
  -470
  -485
  -502
  -520
  -539
  -560
  -582
  -605
  -631
  -657
  -686
  -716
  -748
  -781
  -817
  -854
  -894
  -936
  -980
  -1,026
  -1,075
  -1,126
  -1,180
  -1,237
  -1,297
New CAPEX, $m
  -724
  -143
  -168
  -192
  -216
  -239
  -263
  -286
  -310
  -333
  -358
  -383
  -409
  -435
  -462
  -491
  -520
  -550
  -582
  -615
  -649
  -685
  -722
  -761
  -802
  -845
  -890
  -936
  -985
  -1,037
  -1,090
Cash from investing activities, $m
  -1,016
  -558
  -591
  -625
  -660
  -695
  -733
  -771
  -812
  -853
  -897
  -943
  -991
  -1,040
  -1,093
  -1,148
  -1,206
  -1,266
  -1,330
  -1,396
  -1,466
  -1,539
  -1,616
  -1,697
  -1,782
  -1,871
  -1,965
  -2,062
  -2,165
  -2,274
  -2,387
Free cash flow, $m
  651
  773
  538
  525
  525
  536
  559
  593
  639
  695
  763
  786
  876
  979
  1,094
  1,222
  1,362
  1,517
  1,685
  1,868
  2,067
  2,281
  2,513
  2,762
  3,029
  3,316
  3,623
  3,952
  4,303
  4,678
  5,078
Issuance/(repayment) of debt, $m
  -205
  198
  243
  278
  312
  346
  380
  413
  448
  482
  517
  554
  591
  629
  668
  709
  752
  796
  841
  889
  939
  990
  1,045
  1,101
  1,160
  1,222
  1,286
  1,354
  1,425
  1,499
  1,577
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  
  -205
  198
  243
  278
  312
  346
  380
  413
  448
  482
  517
  554
  591
  629
  668
  709
  752
  796
  841
  889
  939
  990
  1,045
  1,101
  1,160
  1,222
  1,286
  1,354
  1,425
  1,499
  1,577
Total cash flow (excl. dividends), $m
  379
  971
  781
  803
  837
  882
  939
  1,007
  1,086
  1,177
  1,280
  1,339
  1,467
  1,608
  1,762
  1,931
  2,114
  2,312
  2,526
  2,757
  3,005
  3,272
  3,557
  3,863
  4,189
  4,538
  4,910
  5,306
  5,728
  6,177
  6,654
Retained Cash Flow (-), $m
  -166
  -125
  -145
  -165
  -186
  -206
  -226
  -246
  -266
  -287
  -308
  -329
  -351
  -374
  -398
  -422
  -447
  -473
  -501
  -529
  -558
  -589
  -621
  -655
  -690
  -727
  -765
  -805
  -848
  -892
  -938
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
 
  846
  636
  638
  651
  677
  713
  761
  820
  891
  973
  1,010
  1,116
  1,234
  1,365
  1,509
  1,667
  1,839
  2,026
  2,228
  2,447
  2,682
  2,936
  3,208
  3,499
  3,811
  4,144
  4,501
  4,880
  5,285
  5,716
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  794
  558
  518
  487
  463
  442
  424
  407
  390
  372
  334
  315
  294
  270
  245
  219
  193
  166
  141
  117
  95
  75
  59
  44
  33
  24
  16
  11
  7
  5
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

Agrium Inc. produces, markets, and distributes crop nutrients, crop protection products, seeds, and merchandise products primarily in the United States, Canada, Australia, and South America. It operates in two segments, Retail and Wholesale. The offers crop nutrients, including nitrogen in dry and liquid forms, potash, phosphates, sulfur, and micronutrients; crop protection products, such as herbicides, fungicides, insecticides, and adjuvant products; and merchandise products comprising fencing, feed supplements, livestock-related animal health products, irrigation equipment, and other products, as well as provides seeds and seed-related information and analysis. The company also offers product and services, such as soil and leaf testing, crop scouting, and precision agriculture services, as well as livestock marketing, and various insurance and real estate services. In addition, it produces, markets, and distributes nitrogen, potash, and phosphate products, as well as ammonia, urea, ammonium nitrate, and aqua ammonia for agricultural and industrial customers. Further, the company purchases and resells crop nutrient products. Agrium Inc. provides its products under the Loveland, DynaGro, Proven, and Dalgety brands. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.

FINANCIAL RATIOS  of  Agrium (AGU)

Valuation Ratios
P/E Ratio 22.1
Price to Sales 1
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 13.9
Growth Rates
Sales Growth Rate -7.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -39.1%
Cap. Spend. - 3 Yr. Gr. Rate -16.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 71.3%
Total Debt to Equity 82.9%
Interest Coverage 4
Management Effectiveness
Return On Assets 4.7%
Ret/ On Assets - 3 Yr. Avg. 5.5%
Return On Total Capital 5.2%
Ret/ On T. Cap. - 3 Yr. Avg. 6.7%
Return On Equity 9.7%
Return On Equity - 3 Yr. Avg. 12%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 24.8%
Gross Margin - 3 Yr. Avg. 24.4%
EBITDA Margin 11.9%
EBITDA Margin - 3 Yr. Avg. 12.1%
Operating Margin 8%
Oper. Margin - 3 Yr. Avg. 8.7%
Pre-Tax Margin 6%
Pre-Tax Margin - 3 Yr. Avg. 7.2%
Net Profit Margin 4.3%
Net Profit Margin - 3 Yr. Avg. 5.2%
Effective Tax Rate 27.3%
Eff/ Tax Rate - 3 Yr. Avg. 25.8%
Payout Ratio 81.4%

AGU stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AGU stock intrinsic value calculation we used $13665 million for the last fiscal year's total revenue generated by Agrium. The default revenue input number comes from 2016 income statement of Agrium. 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 AGU stock valuation model: a) initial revenue growth rate of 2% 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 6.5%, whose default value for AGU is calculated based on our internal credit rating of Agrium, 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 Agrium.
    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 AGU stock the variable cost ratio is equal to 54.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5295 million in the base year in the intrinsic value calculation for AGU 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 5.2% for Agrium.

Corporate tax rate of 27% is the nominal tax rate for Agrium. 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 AGU 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 AGU are equal to 52.5%.

Life of production assets of 17.3 years is the average useful life of capital assets used in Agrium 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 AGU 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 - $6169 million for Agrium - 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 137.206 million for Agrium 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 Agrium at the current share price and the inputted number of shares is $13.0 billion.


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▶ Agrium Files 2016 Annual Report   [Mar-02-17 01:33PM  Marketwired]
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▶ CORRECTION - Agrium Inc.   [Feb-16-17 01:14PM  Marketwired]
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Stock chart of AGU Financial statements of AGU
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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