Intrinsic value of Compania de Minas Buenaventura ADR - BVN

Previous Close

$12.23

  Intrinsic Value

$2.53

stock screener

  Rating & Target

str. sell

-79%

  Value-price divergence*

0%

Previous close

$12.23

 
Intrinsic value

$2.53

 
Up/down potential

-79%

 
Rating

str. sell

 
Value-price divergence*

0%

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

We calculate the intrinsic value of BVN 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 3.4

 

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, %
  12.29
  22.50
  20.75
  19.18
  17.76
  16.48
  15.33
  14.30
  13.37
  12.53
  11.78
  11.10
  10.49
  9.94
  9.45
  9.00
  8.60
  8.24
  7.92
  7.63
  7.36
  7.13
  6.91
  6.72
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.82
Revenue, $m
  1,069
  1,310
  1,581
  1,884
  2,219
  2,585
  2,981
  3,407
  3,863
  4,347
  4,859
  5,399
  5,965
  6,558
  7,178
  7,824
  8,497
  9,198
  9,926
  10,683
  11,470
  12,287
  13,137
  14,020
  14,939
  15,894
  16,889
  17,924
  19,003
  20,127
  21,299
Variable operating expenses, $m
 
  1,511
  1,825
  2,175
  2,561
  2,983
  3,440
  3,932
  4,458
  5,017
  5,608
  6,230
  6,884
  7,568
  8,283
  9,029
  9,806
  10,614
  11,455
  12,328
  13,236
  14,180
  15,160
  16,179
  17,239
  18,342
  19,490
  20,684
  21,929
  23,226
  24,579
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
  937
  1,511
  1,825
  2,175
  2,561
  2,983
  3,440
  3,932
  4,458
  5,017
  5,608
  6,230
  6,884
  7,568
  8,283
  9,029
  9,806
  10,614
  11,455
  12,328
  13,236
  14,180
  15,160
  16,179
  17,239
  18,342
  19,490
  20,684
  21,929
  23,226
  24,579
Operating income, $m
  132
  -202
  -244
  -290
  -342
  -398
  -459
  -525
  -595
  -669
  -748
  -831
  -919
  -1,010
  -1,105
  -1,205
  -1,309
  -1,416
  -1,529
  -1,645
  -1,766
  -1,892
  -2,023
  -2,159
  -2,301
  -2,448
  -2,601
  -2,760
  -2,926
  -3,100
  -3,280
EBITDA, $m
  132
  26
  31
  38
  44
  51
  59
  68
  77
  87
  97
  107
  119
  131
  143
  156
  169
  183
  198
  213
  228
  245
  261
  279
  297
  316
  336
  357
  378
  401
  424
Interest expense (income), $m
  -34
  21
  31
  44
  57
  72
  88
  106
  125
  146
  167
  190
  214
  240
  266
  294
  323
  353
  384
  417
  451
  486
  523
  561
  600
  641
  684
  728
  775
  823
  873
Earnings before tax, $m
  -255
  -222
  -275
  -334
  -399
  -470
  -548
  -631
  -720
  -815
  -916
  -1,022
  -1,133
  -1,250
  -1,372
  -1,499
  -1,631
  -1,769
  -1,913
  -2,062
  -2,217
  -2,378
  -2,546
  -2,720
  -2,901
  -3,089
  -3,285
  -3,489
  -3,701
  -3,923
  -4,153
Tax expense, $m
  54
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -323
  -222
  -275
  -334
  -399
  -470
  -548
  -631
  -720
  -815
  -916
  -1,022
  -1,133
  -1,250
  -1,372
  -1,499
  -1,631
  -1,769
  -1,913
  -2,062
  -2,217
  -2,378
  -2,546
  -2,720
  -2,901
  -3,089
  -3,285
  -3,489
  -3,701
  -3,923
  -4,153

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  81
  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
  4,266
  5,135
  6,201
  7,390
  8,702
  10,137
  11,691
  13,363
  15,149
  17,048
  19,056
  21,172
  23,393
  25,719
  28,149
  30,683
  33,323
  36,070
  38,926
  41,895
  44,980
  48,186
  51,518
  54,982
  58,584
  62,331
  66,230
  70,290
  74,520
  78,929
  83,526
Adjusted assets (=assets-cash), $m
  4,185
  5,135
  6,201
  7,390
  8,702
  10,137
  11,691
  13,363
  15,149
  17,048
  19,056
  21,172
  23,393
  25,719
  28,149
  30,683
  33,323
  36,070
  38,926
  41,895
  44,980
  48,186
  51,518
  54,982
  58,584
  62,331
  66,230
  70,290
  74,520
  78,929
  83,526
Revenue / Adjusted assets
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
  0.255
Average production assets, $m
  1,860
  2,277
  2,750
  3,277
  3,859
  4,495
  5,184
  5,926
  6,718
  7,560
  8,450
  9,389
  10,374
  11,405
  12,483
  13,606
  14,777
  15,995
  17,262
  18,578
  19,946
  21,368
  22,845
  24,381
  25,979
  27,640
  29,369
  31,170
  33,046
  35,001
  37,039
Working capital, $m
  57
  86
  104
  124
  146
  171
  197
  225
  255
  287
  321
  356
  394
  433
  474
  516
  561
  607
  655
  705
  757
  811
  867
  925
  986
  1,049
  1,115
  1,183
  1,254
  1,328
  1,406
Total debt, $m
  667
  896
  1,244
  1,631
  2,059
  2,527
  3,033
  3,578
  4,161
  4,780
  5,434
  6,124
  6,848
  7,606
  8,399
  9,225
  10,085
  10,981
  11,912
  12,880
  13,885
  14,931
  16,017
  17,146
  18,320
  19,542
  20,813
  22,137
  23,516
  24,953
  26,451
Total liabilities, $m
  1,445
  1,674
  2,022
  2,409
  2,837
  3,305
  3,811
  4,356
  4,939
  5,558
  6,212
  6,902
  7,626
  8,384
  9,177
  10,003
  10,863
  11,759
  12,690
  13,658
  14,663
  15,709
  16,795
  17,924
  19,098
  20,320
  21,591
  22,915
  24,294
  25,731
  27,229
Total equity, $m
  2,821
  3,461
  4,179
  4,981
  5,865
  6,832
  7,880
  9,006
  10,211
  11,490
  12,844
  14,270
  15,767
  17,335
  18,972
  20,681
  22,460
  24,311
  26,236
  28,237
  30,317
  32,477
  34,723
  37,058
  39,485
  42,011
  44,639
  47,376
  50,227
  53,198
  56,296
Total liabilities and equity, $m
  4,266
  5,135
  6,201
  7,390
  8,702
  10,137
  11,691
  13,362
  15,150
  17,048
  19,056
  21,172
  23,393
  25,719
  28,149
  30,684
  33,323
  36,070
  38,926
  41,895
  44,980
  48,186
  51,518
  54,982
  58,583
  62,331
  66,230
  70,291
  74,521
  78,929
  83,525
Debt-to-equity ratio
  0.236
  0.260
  0.300
  0.330
  0.350
  0.370
  0.380
  0.400
  0.410
  0.420
  0.420
  0.430
  0.430
  0.440
  0.440
  0.450
  0.450
  0.450
  0.450
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.470
  0.470
  0.470
  0.470
  0.470
  0.470
Adjusted equity ratio
  0.668
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -323
  -222
  -275
  -334
  -399
  -470
  -548
  -631
  -720
  -815
  -916
  -1,022
  -1,133
  -1,250
  -1,372
  -1,499
  -1,631
  -1,769
  -1,913
  -2,062
  -2,217
  -2,378
  -2,546
  -2,720
  -2,901
  -3,089
  -3,285
  -3,489
  -3,701
  -3,923
  -4,153
Depreciation, amort., depletion, $m
  0
  228
  275
  328
  386
  450
  518
  593
  672
  756
  845
  939
  1,037
  1,140
  1,248
  1,361
  1,478
  1,600
  1,726
  1,858
  1,995
  2,137
  2,285
  2,438
  2,598
  2,764
  2,937
  3,117
  3,305
  3,500
  3,704
Funds from operations, $m
  377
  6
  0
  -6
  -13
  -21
  -29
  -38
  -48
  -59
  -71
  -83
  -96
  -109
  -123
  -138
  -154
  -170
  -187
  -204
  -223
  -241
  -261
  -282
  -303
  -325
  -348
  -372
  -397
  -423
  -449
Change in working capital, $m
  -14
  16
  18
  20
  22
  24
  26
  28
  30
  32
  34
  36
  37
  39
  41
  43
  44
  46
  48
  50
  52
  54
  56
  58
  61
  63
  66
  68
  71
  74
  77
Cash from operations, $m
  391
  -10
  -18
  -26
  -35
  -45
  -55
  -66
  -78
  -91
  -104
  -118
  -133
  -148
  -164
  -181
  -198
  -216
  -235
  -254
  -274
  -295
  -317
  -340
  -363
  -388
  -414
  -440
  -468
  -497
  -527
Maintenance CAPEX, $m
  0
  -186
  -228
  -275
  -328
  -386
  -450
  -518
  -593
  -672
  -756
  -845
  -939
  -1,037
  -1,140
  -1,248
  -1,361
  -1,478
  -1,600
  -1,726
  -1,858
  -1,995
  -2,137
  -2,285
  -2,438
  -2,598
  -2,764
  -2,937
  -3,117
  -3,305
  -3,500
New CAPEX, $m
  -372
  -418
  -473
  -527
  -582
  -636
  -689
  -741
  -792
  -842
  -891
  -938
  -985
  -1,031
  -1,078
  -1,124
  -1,171
  -1,218
  -1,267
  -1,316
  -1,368
  -1,422
  -1,478
  -1,536
  -1,597
  -1,662
  -1,729
  -1,801
  -1,876
  -1,955
  -2,039
Cash from investing activities, $m
  -365
  -604
  -701
  -802
  -910
  -1,022
  -1,139
  -1,259
  -1,385
  -1,514
  -1,647
  -1,783
  -1,924
  -2,068
  -2,218
  -2,372
  -2,532
  -2,696
  -2,867
  -3,042
  -3,226
  -3,417
  -3,615
  -3,821
  -4,035
  -4,260
  -4,493
  -4,738
  -4,993
  -5,260
  -5,539
Free cash flow, $m
  26
  -614
  -718
  -828
  -945
  -1,067
  -1,194
  -1,326
  -1,463
  -1,605
  -1,751
  -1,902
  -2,057
  -2,217
  -2,382
  -2,553
  -2,729
  -2,912
  -3,101
  -3,297
  -3,500
  -3,712
  -3,932
  -4,160
  -4,399
  -4,647
  -4,907
  -5,178
  -5,461
  -5,756
  -6,065
Issuance/(repayment) of debt, $m
  -1
  310
  347
  388
  428
  468
  507
  545
  582
  619
  655
  690
  724
  758
  792
  826
  861
  895
  931
  968
  1,006
  1,045
  1,086
  1,129
  1,174
  1,222
  1,271
  1,324
  1,379
  1,437
  1,499
Issuance/(repurchase) of shares, $m
  -1
  862
  993
  1,135
  1,283
  1,437
  1,595
  1,758
  1,924
  2,095
  2,269
  2,448
  2,630
  2,817
  3,009
  3,207
  3,411
  3,621
  3,838
  4,063
  4,297
  4,539
  4,791
  5,054
  5,328
  5,614
  5,913
  6,225
  6,552
  6,894
  7,252
Cash from financing (excl. dividends), $m  
  -25
  1,172
  1,340
  1,523
  1,711
  1,905
  2,102
  2,303
  2,506
  2,714
  2,924
  3,138
  3,354
  3,575
  3,801
  4,033
  4,272
  4,516
  4,769
  5,031
  5,303
  5,584
  5,877
  6,183
  6,502
  6,836
  7,184
  7,549
  7,931
  8,331
  8,751
Total cash flow (excl. dividends), $m
  2
  559
  622
  694
  766
  838
  908
  976
  1,044
  1,109
  1,173
  1,236
  1,297
  1,358
  1,419
  1,480
  1,542
  1,604
  1,668
  1,734
  1,802
  1,873
  1,946
  2,023
  2,104
  2,188
  2,278
  2,372
  2,471
  2,575
  2,685
Retained Cash Flow (-), $m
  340
  -862
  -993
  -1,135
  -1,283
  -1,437
  -1,595
  -1,758
  -1,924
  -2,095
  -2,269
  -2,448
  -2,630
  -2,817
  -3,009
  -3,207
  -3,411
  -3,621
  -3,838
  -4,063
  -4,297
  -4,539
  -4,791
  -5,054
  -5,328
  -5,614
  -5,913
  -6,225
  -6,552
  -6,894
  -7,252
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
 
  -304
  -371
  -441
  -517
  -599
  -687
  -781
  -881
  -986
  -1,096
  -1,212
  -1,333
  -1,459
  -1,590
  -1,727
  -1,869
  -2,016
  -2,170
  -2,329
  -2,495
  -2,667
  -2,845
  -3,031
  -3,225
  -3,426
  -3,636
  -3,854
  -4,082
  -4,319
  -4,567
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  -291
  -339
  -383
  -426
  -464
  -499
  -528
  -551
  -566
  -575
  -576
  -569
  -555
  -534
  -507
  -475
  -439
  -400
  -359
  -317
  -276
  -236
  -199
  -164
  -133
  -106
  -83
  -63
  -47
  -34
Current shareholders' claim on cash, %
  100
  79.8
  64.5
  52.6
  43.4
  36.0
  30.2
  25.5
  21.7
  18.5
  15.9
  13.7
  11.9
  10.4
  9.1
  8.0
  7.0
  6.2
  5.5
  4.8
  4.3
  3.8
  3.4
  3.0
  2.7
  2.4
  2.2
  2.0
  1.7
  1.6
  1.4

Compañía de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru. The company operates five directly operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Breapampa; and two mining unites that are under development stage comprising Tambomayo and San Gabriel. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, and La Zanja mines, as well as Tantahuatay, Yanacocha and Cerro Verde mines. In addition, the company provides electrical transmission services; energy generation services through hydroelectric plants; and geological, engineering, design, and construction consulting services to the mining sector, as well as engages in chemical processing activities. Compañía de Minas Buenaventura S.A.A. was founded in 1953 and is headquartered in Lima, Peru.

FINANCIAL RATIOS  of  Compania de Minas Buenaventura ADR (BVN)

Valuation Ratios
P/E Ratio -9.6
Price to Sales 2.9
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 8
Price to Free Cash Flow 163.6
Growth Rates
Sales Growth Rate 12.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 67.6%
Cap. Spend. - 3 Yr. Gr. Rate -5.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 20.3%
Total Debt to Equity 23.6%
Interest Coverage 9
Management Effectiveness
Return On Assets -8.3%
Ret/ On Assets - 3 Yr. Avg. -5.7%
Return On Total Capital -8.8%
Ret/ On T. Cap. - 3 Yr. Avg. -6.3%
Return On Equity -10.8%
Return On Equity - 3 Yr. Avg. -7.5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 22.1%
Gross Margin - 3 Yr. Avg. 12.4%
EBITDA Margin -27%
EBITDA Margin - 3 Yr. Avg. -21.3%
Operating Margin 12.3%
Oper. Margin - 3 Yr. Avg. 0.7%
Pre-Tax Margin -23.9%
Pre-Tax Margin - 3 Yr. Avg. -19.2%
Net Profit Margin -30.2%
Net Profit Margin - 3 Yr. Avg. -23.3%
Effective Tax Rate -21.2%
Eff/ Tax Rate - 3 Yr. Avg. 54.4%
Payout Ratio 0%

BVN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BVN stock intrinsic value calculation we used $1069 million for the last fiscal year's total revenue generated by Compania de Minas Buenaventura ADR. The default revenue input number comes from 2016 income statement of Compania de Minas Buenaventura ADR. 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 BVN stock valuation model: a) initial revenue growth rate of 22.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for BVN is calculated based on our internal credit rating of Compania de Minas Buenaventura ADR, 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 Compania de Minas Buenaventura ADR.
    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 BVN stock the variable cost ratio is equal to 115.4%.

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 BVN 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 Compania de Minas Buenaventura ADR.

Corporate tax rate of 27% is the nominal tax rate for Compania de Minas Buenaventura ADR. 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 BVN 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 BVN are equal to 173.9%.

Life of production assets of 10 years is the average useful life of capital assets used in Compania de Minas Buenaventura ADR 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 BVN is equal to 6.6%. 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 - $2821 million for Compania de Minas Buenaventura ADR - 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 278.309 million for Compania de Minas Buenaventura ADR 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 Compania de Minas Buenaventura ADR at the current share price and the inputted number of shares is $3.4 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ How US Employment Numbers Played Precious Metals This Week   [Aug-07-17 03:22PM  Market Realist]
▶ What Miners Technical Indicators Suggest   [Aug-04-17 10:19AM  Market Realist]
▶ How Did Miners Correlations Trend in July?   [Aug-02-17 11:33AM  Market Realist]
▶ Buenaventura reports 2Q loss   [Jul-28-17 08:04PM  Associated Press]
▶ How Market Volatility Could Steer Gold   [02:05PM  Market Realist]
▶ How Miners Correlation Trends Moved in Mid-July   [Jul-24-17 03:20PM  Market Realist]
▶ Have Miners Relative Strength Levels Revived?   [01:18PM  Market Realist]
▶ How Are Miners Correlation Trends Moving in July 2017?   [Jul-20-17 09:37AM  Market Realist]
▶ How the Indicators of Precious Metal Miners Are Moving   [Jul-11-17 11:36AM  Market Realist]
▶ How Relative Strength Levels Revived along with Prices   [Jul-06-17 03:14PM  Market Realist]
▶ Gauging Mining Stocks Correlation Trends   [Jun-19-17 01:16PM  Market Realist]
▶ Whats the Volatility of Mining Stocks?   [Jun-16-17 12:05PM  Market Realist]
▶ Will the Fed Pull Golds Strings?   [Jun-14-17 12:58PM  Market Realist]
▶ How Have Mining Stocks Performed This Year?   [Jun-06-17 03:00PM  Market Realist]
▶ Reading the Correlation Trends of Miners in May 2017   [May-30-17 04:05PM  Market Realist]
▶ Buenaventura posts 1Q profit   [Apr-27-17 07:14PM  Associated Press]
▶ How Precious Metals Moved on April 10   [04:23PM  Market Realist]
▶ How Mining Shares Are Moving in April 2017   [07:38AM  Market Realist]
▶ Rise in Precious Metals: More Demand for Mining Shares?   [Apr-07-17 12:46PM  Market Realist]
▶ How Have Mining Stocks Been Performing in April 2017?   [Apr-06-17 01:31PM  Market Realist]
▶ How Barrick Gold Correlates to Gold   [09:07AM  Market Realist]
▶ How Does Economic Sentiment Affect Precious Metals?   [Mar-31-17 06:59PM  Market Realist]
▶ Wheres the Platinum Spread Headed in 2017?   [12:20PM  Market Realist]
▶ Buenaventura Announces Leadership Transition   [Mar-30-17 05:24PM  Business Wire]
▶ Will Mining Stocks Keep Close Tabs on Precious Metals?   [Mar-21-17 02:11PM  Market Realist]
▶ Why Copper Won't Rally   [Mar-20-17 01:20PM  Barrons.com]
▶ Precious Metal Miners: How They Performed in February   [Mar-02-17 12:32PM  at Market Realist]
▶ Peru ETF Shines, Moody's Lowers GDP Outlook   [Feb-06-17 06:04PM  at Barrons.com]
▶ 14 Emerging Market Stocks You Should Have Owned in 2016   [Jan-03-17 12:03PM  at Barrons.com]
▶ Here is What Hedge Funds Think About Ryder System, Inc. (R)   [Dec-07-16 06:14PM  at Insider Monkey]
▶ Buenaventura Announces Separation of Chairman and CEO Roles   [Dec-05-16 09:35AM  Business Wire]
▶ 5 Gold Investments To Ponder As Price Rises   [Nov-28-16 01:27PM  at Barrons.com]
Stock chart of BVN Financial statements of BVN
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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