Intrinsic value of Ampco-Pittsburgh - AP

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$15.15

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$15.15

 
Intrinsic value

$26.69

 
Up/down potential

+76%

 
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 AP 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 0.2

 

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, %
  39.50
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  332
  531
  821
  1,227
  1,781
  2,513
  3,454
  4,636
  6,088
  7,834
  9,895
  12,287
  15,022
  18,106
  21,543
  25,331
  29,466
  33,942
  38,753
  43,889
  49,345
  55,111
  61,183
  67,556
  74,227
  81,195
  88,461
  96,028
  103,900
  112,086
  120,594
Variable operating expenses, $m
 
  520
  803
  1,202
  1,743
  2,460
  3,382
  4,539
  5,960
  7,669
  9,687
  12,029
  14,706
  17,726
  21,091
  24,799
  28,847
  33,229
  37,939
  42,968
  48,308
  53,954
  59,899
  66,138
  72,669
  79,490
  86,603
  94,011
  101,718
  109,732
  118,061
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
  386
  520
  803
  1,202
  1,743
  2,460
  3,382
  4,539
  5,960
  7,669
  9,687
  12,029
  14,706
  17,726
  21,091
  24,799
  28,847
  33,229
  37,939
  42,968
  48,308
  53,954
  59,899
  66,138
  72,669
  79,490
  86,603
  94,011
  101,718
  109,732
  118,061
Operating income, $m
  -55
  11
  17
  26
  37
  53
  73
  97
  128
  165
  208
  258
  315
  380
  452
  532
  619
  713
  814
  922
  1,036
  1,157
  1,285
  1,419
  1,559
  1,705
  1,858
  2,017
  2,182
  2,354
  2,532
EBITDA, $m
  -35
  43
  67
  100
  145
  205
  281
  378
  496
  638
  806
  1,001
  1,223
  1,474
  1,754
  2,063
  2,399
  2,764
  3,156
  3,574
  4,018
  4,488
  4,982
  5,501
  6,044
  6,612
  7,203
  7,820
  8,461
  9,127
  9,820
Interest expense (income), $m
  1
  1
  9
  21
  38
  61
  91
  130
  178
  238
  310
  395
  494
  606
  734
  875
  1,031
  1,202
  1,386
  1,585
  1,796
  2,021
  2,259
  2,509
  2,772
  3,047
  3,334
  3,634
  3,946
  4,270
  4,608
Earnings before tax, $m
  -58
  10
  8
  5
  0
  -8
  -18
  -32
  -50
  -74
  -102
  -137
  -178
  -226
  -281
  -343
  -413
  -489
  -573
  -663
  -760
  -864
  -974
  -1,091
  -1,213
  -1,342
  -1,477
  -1,617
  -1,764
  -1,916
  -2,075
Tax expense, $m
  22
  3
  2
  1
  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
  -80
  8
  6
  3
  0
  -8
  -18
  -32
  -50
  -74
  -102
  -137
  -178
  -226
  -281
  -343
  -413
  -489
  -573
  -663
  -760
  -864
  -974
  -1,091
  -1,213
  -1,342
  -1,477
  -1,617
  -1,764
  -1,916
  -2,075

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  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
  0
Total assets, $m
  566
  843
  1,303
  1,948
  2,827
  3,988
  5,483
  7,359
  9,663
  12,434
  15,706
  19,503
  23,844
  28,740
  34,195
  40,208
  46,771
  53,876
  61,512
  69,665
  78,325
  87,478
  97,117
  107,233
  117,821
  128,881
  140,414
  152,425
  164,921
  177,914
  191,419
Adjusted assets (=assets-cash), $m
  527
  843
  1,303
  1,948
  2,827
  3,988
  5,483
  7,359
  9,663
  12,434
  15,706
  19,503
  23,844
  28,740
  34,195
  40,208
  46,771
  53,876
  61,512
  69,665
  78,325
  87,478
  97,117
  107,233
  117,821
  128,881
  140,414
  152,425
  164,921
  177,914
  191,419
Revenue / Adjusted assets
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
Average production assets, $m
  187
  299
  461
  690
  1,001
  1,412
  1,941
  2,606
  3,421
  4,403
  5,561
  6,905
  8,442
  10,176
  12,107
  14,236
  16,560
  19,075
  21,779
  24,666
  27,732
  30,973
  34,385
  37,967
  41,716
  45,632
  49,715
  53,968
  58,392
  62,992
  67,774
Working capital, $m
  77
  104
  161
  241
  349
  492
  677
  909
  1,193
  1,535
  1,939
  2,408
  2,944
  3,549
  4,222
  4,965
  5,775
  6,653
  7,595
  8,602
  9,672
  10,802
  11,992
  13,241
  14,549
  15,914
  17,338
  18,821
  20,364
  21,969
  23,636
Total debt, $m
  52
  260
  601
  1,080
  1,731
  2,593
  3,702
  5,095
  6,804
  8,860
  11,288
  14,105
  17,326
  20,959
  25,007
  29,468
  34,338
  39,610
  45,276
  51,326
  57,751
  64,543
  71,695
  79,201
  87,057
  95,264
  103,821
  112,733
  122,005
  131,646
  141,667
Total liabilities, $m
  418
  626
  967
  1,446
  2,097
  2,959
  4,068
  5,461
  7,170
  9,226
  11,654
  14,471
  17,692
  21,325
  25,373
  29,834
  34,704
  39,976
  45,642
  51,692
  58,117
  64,909
  72,061
  79,567
  87,423
  95,630
  104,187
  113,099
  122,371
  132,012
  142,033
Total equity, $m
  148
  218
  336
  503
  729
  1,029
  1,415
  1,899
  2,493
  3,208
  4,052
  5,032
  6,152
  7,415
  8,822
  10,374
  12,067
  13,900
  15,870
  17,974
  20,208
  22,569
  25,056
  27,666
  30,398
  33,251
  36,227
  39,326
  42,550
  45,902
  49,386
Total liabilities and equity, $m
  566
  844
  1,303
  1,949
  2,826
  3,988
  5,483
  7,360
  9,663
  12,434
  15,706
  19,503
  23,844
  28,740
  34,195
  40,208
  46,771
  53,876
  61,512
  69,666
  78,325
  87,478
  97,117
  107,233
  117,821
  128,881
  140,414
  152,425
  164,921
  177,914
  191,419
Debt-to-equity ratio
  0.351
  1.190
  1.790
  2.150
  2.370
  2.520
  2.620
  2.680
  2.730
  2.760
  2.790
  2.800
  2.820
  2.830
  2.830
  2.840
  2.850
  2.850
  2.850
  2.860
  2.860
  2.860
  2.860
  2.860
  2.860
  2.860
  2.870
  2.870
  2.870
  2.870
  2.870
Adjusted equity ratio
  0.207
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -80
  8
  6
  3
  0
  -8
  -18
  -32
  -50
  -74
  -102
  -137
  -178
  -226
  -281
  -343
  -413
  -489
  -573
  -663
  -760
  -864
  -974
  -1,091
  -1,213
  -1,342
  -1,477
  -1,617
  -1,764
  -1,916
  -2,075
Depreciation, amort., depletion, $m
  20
  32
  50
  74
  108
  152
  209
  280
  368
  473
  598
  742
  908
  1,094
  1,302
  1,531
  1,781
  2,051
  2,342
  2,652
  2,982
  3,330
  3,697
  4,082
  4,486
  4,907
  5,346
  5,803
  6,279
  6,773
  7,287
Funds from operations, $m
  -8
  40
  56
  78
  107
  144
  191
  248
  317
  400
  496
  605
  730
  868
  1,021
  1,187
  1,368
  1,562
  1,769
  1,989
  2,222
  2,466
  2,723
  2,992
  3,272
  3,565
  3,869
  4,186
  4,515
  4,857
  5,212
Change in working capital, $m
  -2
  39
  57
  80
  108
  143
  185
  232
  284
  342
  404
  469
  536
  605
  674
  742
  810
  877
  943
  1,007
  1,069
  1,130
  1,190
  1,249
  1,308
  1,366
  1,424
  1,483
  1,543
  1,604
  1,668
Cash from operations, $m
  -6
  41
  -1
  -2
  -1
  1
  6
  16
  33
  58
  92
  137
  193
  263
  347
  445
  558
  685
  826
  982
  1,152
  1,336
  1,533
  1,743
  1,965
  2,199
  2,445
  2,703
  2,972
  3,253
  3,545
Maintenance CAPEX, $m
  0
  -20
  -32
  -50
  -74
  -108
  -152
  -209
  -280
  -368
  -473
  -598
  -742
  -908
  -1,094
  -1,302
  -1,531
  -1,781
  -2,051
  -2,342
  -2,652
  -2,982
  -3,330
  -3,697
  -4,082
  -4,486
  -4,907
  -5,346
  -5,803
  -6,279
  -6,773
New CAPEX, $m
  -11
  -112
  -163
  -229
  -311
  -411
  -529
  -664
  -816
  -981
  -1,158
  -1,344
  -1,537
  -1,734
  -1,931
  -2,129
  -2,324
  -2,516
  -2,703
  -2,887
  -3,066
  -3,241
  -3,413
  -3,582
  -3,749
  -3,916
  -4,083
  -4,252
  -4,424
  -4,600
  -4,781
Cash from investing activities, $m
  -41
  -132
  -195
  -279
  -385
  -519
  -681
  -873
  -1,096
  -1,349
  -1,631
  -1,942
  -2,279
  -2,642
  -3,025
  -3,431
  -3,855
  -4,297
  -4,754
  -5,229
  -5,718
  -6,223
  -6,743
  -7,279
  -7,831
  -8,402
  -8,990
  -9,598
  -10,227
  -10,879
  -11,554
Free cash flow, $m
  -47
  -91
  -196
  -280
  -386
  -518
  -675
  -857
  -1,063
  -1,291
  -1,540
  -1,806
  -2,086
  -2,378
  -2,678
  -2,986
  -3,297
  -3,612
  -3,928
  -4,246
  -4,566
  -4,887
  -5,210
  -5,536
  -5,867
  -6,202
  -6,545
  -6,895
  -7,255
  -7,626
  -8,010
Issuance/(repayment) of debt, $m
  -2
  235
  341
  479
  652
  862
  1,109
  1,393
  1,710
  2,056
  2,427
  2,818
  3,221
  3,633
  4,048
  4,461
  4,870
  5,272
  5,666
  6,050
  6,425
  6,792
  7,152
  7,506
  7,857
  8,207
  8,557
  8,912
  9,272
  9,641
  10,020
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  8
  38
  76
  120
  173
  233
  300
  375
  456
  545
  640
  742
  849
  963
  1,082
  1,207
  1,338
  1,474
Cash from financing (excl. dividends), $m  
  -4
  235
  341
  479
  652
  862
  1,109
  1,393
  1,710
  2,056
  2,427
  2,818
  3,221
  3,641
  4,086
  4,537
  4,990
  5,445
  5,899
  6,350
  6,800
  7,248
  7,697
  8,146
  8,599
  9,056
  9,520
  9,994
  10,479
  10,979
  11,494
Total cash flow (excl. dividends), $m
  -52
  144
  145
  199
  265
  344
  434
  536
  647
  765
  887
  1,012
  1,135
  1,255
  1,369
  1,476
  1,573
  1,661
  1,737
  1,804
  1,860
  1,905
  1,942
  1,970
  1,990
  2,004
  2,012
  2,016
  2,017
  2,014
  2,010
Retained Cash Flow (-), $m
  63
  -82
  -119
  -167
  -227
  -300
  -386
  -484
  -594
  -715
  -844
  -980
  -1,120
  -1,263
  -1,407
  -1,551
  -1,693
  -1,833
  -1,970
  -2,104
  -2,234
  -2,362
  -2,487
  -2,610
  -2,732
  -2,853
  -2,975
  -3,099
  -3,224
  -3,352
  -3,484
Prev. year cash balance distribution, $m
 
  12
  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
 
  74
  26
  32
  39
  44
  48
  51
  52
  50
  43
  32
  15
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
  25.93
PV of cash for distribution, $m
 
  70
  23
  26
  29
  30
  30
  29
  26
  22
  17
  11
  4
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
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
  99.9
  99.5
  98.8
  97.9
  96.7
  95.4
  94.0
  92.4
  90.7
  89.0
  87.2
  85.3
  83.4
  81.5
  79.5
  77.6
  75.6
  73.7

Ampco-Pittsburgh Corporation, together with its subsidiaries, manufactures and sells custom designed engineering products to commercial and industrial users worldwide. It operates in two segments, Forged and Cast Engineered Products, and Air and Liquid Processing. The Forged and Cast Engineered Products segment produces forged hardened steel rolls that are used in cold rolling by producers of steel, aluminum, and other metals; ingot and open die forged products for use in the gas and oil, and the aluminum and plastic extrusion industries; and cast rolls for hot and cold strip mills, medium/heavy section mills, and plate mills in various iron and steel qualities. This segment also offers forged rolls for cluster mills and Z-Hi mills; work rolls for narrow and wide strip and aluminum mills; back-up rolls for narrow strip mills; leveling rolls and shafts; and bearings, bushings, and key and keyless bearing sleeves, as well as provides a range of services, including rebuild of mill spare parts, chock inspection and repair, and onsite inspections and installations. The Air and Liquid Processing segment produces custom-engineered finned tube heat exchange coils and related heat transfer products for various industries, including fossil fuel and nuclear power generation, automotive, industrial process, and HVAC; and air handling systems for use in commercial, institutional, and industrial buildings. This segment also provides centrifugal pumps for the refrigeration, power generation, and marine defense industries. Ampco-Pittsburgh Corporation was founded in 1929 and is headquartered in Carnegie, Pennsylvania.

FINANCIAL RATIOS  of  Ampco-Pittsburgh (AP)

Valuation Ratios
P/E Ratio -2.3
Price to Sales 0.6
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow -31
Price to Free Cash Flow -10.9
Growth Rates
Sales Growth Rate 39.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 22.2%
Cap. Spend. - 3 Yr. Gr. Rate -1.7%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 16.9%
Total Debt to Equity 35.1%
Interest Coverage -57
Management Effectiveness
Return On Assets -14.7%
Ret/ On Assets - 3 Yr. Avg. -4.9%
Return On Total Capital -37.7%
Ret/ On T. Cap. - 3 Yr. Avg. -12.6%
Return On Equity -44.6%
Return On Equity - 3 Yr. Avg. -14.8%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 16.6%
Gross Margin - 3 Yr. Avg. 18%
EBITDA Margin -11.1%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin -16.3%
Oper. Margin - 3 Yr. Avg. -4.7%
Pre-Tax Margin -17.5%
Pre-Tax Margin - 3 Yr. Avg. -5.2%
Net Profit Margin -24.1%
Net Profit Margin - 3 Yr. Avg. -8%
Effective Tax Rate -37.9%
Eff/ Tax Rate - 3 Yr. Avg. 40.7%
Payout Ratio -6.3%

AP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AP stock intrinsic value calculation we used $332 million for the last fiscal year's total revenue generated by Ampco-Pittsburgh. The default revenue input number comes from 2016 income statement of Ampco-Pittsburgh. 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 AP stock valuation model: a) initial revenue growth rate of 60% 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 6.3%, whose default value for AP is calculated based on our internal credit rating of Ampco-Pittsburgh, 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 Ampco-Pittsburgh.
    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 AP stock the variable cost ratio is equal to 97.9%.

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 AP 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 Ampco-Pittsburgh.

Corporate tax rate of 27% is the nominal tax rate for Ampco-Pittsburgh. 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 AP 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 AP are equal to 56.2%.

Life of production assets of 9.3 years is the average useful life of capital assets used in Ampco-Pittsburgh 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 AP is equal to 19.6%. 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 - $148 million for Ampco-Pittsburgh - 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 11.972 million for Ampco-Pittsburgh 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 Ampco-Pittsburgh at the current share price and the inputted number of shares is $0.2 billion.


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COMPANY NEWS

▶ Ampco-Pittsburgh First Quarter Results Conference Call   [Apr-24-17 04:21PM  Business Wire]
▶ Outstanding CEOs and Top Executives Winner: Rose Hoover   [Apr-14-17 09:52AM  American City Business Journals]
▶ Top Ranked Income Stocks to Buy for March 22nd   [Mar-22-17 11:23AM  Zacks]
▶ Ampco-Pittsburgh reports 4Q loss   [08:26AM  Associated Press]
▶ Ampco-Pittsburgh Corporation Announces Quarterly Dividend   [Mar-09-17 04:12PM  Business Wire]
▶ Ampco-Pittsburgh Fourth Quarter Results Conference Call   [Feb-28-17 04:29PM  Business Wire]
▶ How YuMe Inc (YUME) Stacks Up Against Its Peers   [Dec-12-16 11:17PM  at Insider Monkey]
▶ Ampco-Pittsburgh Corporation Announces Quarterly Dividend   [Dec-08-16 04:17PM  Business Wire]
▶ United States Steel shares soar following Trump election   [Nov-10-16 12:20PM  at bizjournals.com]
▶ Ampco-Pittsburgh Announces Acquisition of ASW Steel, Inc.   [Nov-01-16 04:12PM  Business Wire]
▶ Ampco-Pittsburgh Third Quarter Results Conference Call   [Oct-18-16 04:29PM  Business Wire]
▶ Why Ampco-Pittsburgh Declined 7% Friday (AP)   [Oct-10-16 11:26AM  at Investopedia]
▶ Ampco-Pittsburgh Corporation Announces Quarterly Dividend   [Sep-22-16 04:33PM  Business Wire]
▶ Ampco-Pittsburgh Second Quarter Results Conference Call   [Jul-19-16 04:22PM  Business Wire]
▶ Ampco-Pittsburgh Corporation Announces Quarterly Dividend   [Jul-06-16 04:21PM  Business Wire]
▶ Stocks to Watch: Antero, Wendy's, Global Blood Therapeutics, Mattress Firm   [Jun-10-16 09:33AM  at The Wall Street Journal]
▶ Ampco-Pittsburgh First Quarter Results Conference Call   [Apr-25-16 05:16PM  Business Wire]
▶ Ampco-Pittsburgh Announces 2015 Earnings   [06:12PM  Business Wire]
▶ Ampco-Pittsburgh Fourth Quarter Results Conference Call   [Feb-18-16 04:39PM  Business Wire]
▶ Ampco-Pittsburgh Corporation Announces Quarterly Dividend   [Dec-17  04:56PM  Business Wire]
▶ Is Ampco-Pittsburgh Corp. (AP) A Good Stock To Buy?   [Nov-30  10:41AM  at Insider Monkey]
▶ NFL Beefs Up Stadium Security After Paris Attacks   [Nov-16  12:08PM  at Fox Business]
Stock chart of AP Financial statements of AP
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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