Intrinsic value of Compania de Minas Buenaventura ADR - BVN

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$11.57

  Intrinsic Value

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  Value-price divergence*

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$11.57

 
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*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 3.2

 

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, %
  12.29
  28.70
  26.33
  24.20
  22.28
  20.55
  18.99
  17.60
  16.34
  15.20
  14.18
  13.26
  12.44
  11.69
  11.02
  10.42
  9.88
  9.39
  8.95
  8.56
  8.20
  7.88
  7.59
  7.33
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
Revenue, $m
  1,069
  1,225
  1,548
  1,922
  2,351
  2,834
  3,372
  3,965
  4,613
  5,314
  6,068
  6,873
  7,727
  8,631
  9,582
  10,581
  11,627
  12,718
  13,857
  15,043
  16,277
  17,559
  18,893
  20,278
  21,718
  23,215
  24,770
  26,388
  28,071
  29,823
  31,647
Variable operating expenses, $m
 
  232
  293
  363
  444
  536
  637
  749
  872
  1,004
  1,147
  1,299
  1,460
  1,631
  1,811
  2,000
  2,197
  2,404
  2,619
  2,843
  3,076
  3,319
  3,571
  3,833
  4,105
  4,388
  4,682
  4,987
  5,305
  5,637
  5,981
Fixed operating expenses, $m
 
  936
  959
  983
  1,008
  1,033
  1,059
  1,085
  1,112
  1,140
  1,169
  1,198
  1,228
  1,259
  1,290
  1,322
  1,355
  1,389
  1,424
  1,460
  1,496
  1,533
  1,572
  1,611
  1,651
  1,693
  1,735
  1,778
  1,823
  1,868
  1,915
Total operating expenses, $m
  937
  1,168
  1,252
  1,346
  1,452
  1,569
  1,696
  1,834
  1,984
  2,144
  2,316
  2,497
  2,688
  2,890
  3,101
  3,322
  3,552
  3,793
  4,043
  4,303
  4,572
  4,852
  5,143
  5,444
  5,756
  6,081
  6,417
  6,765
  7,128
  7,505
  7,896
Operating income, $m
  132
  58
  296
  576
  899
  1,265
  1,676
  2,130
  2,629
  3,170
  3,752
  4,376
  5,039
  5,741
  6,481
  7,259
  8,074
  8,925
  9,814
  10,740
  11,704
  12,707
  13,750
  14,835
  15,962
  17,134
  18,354
  19,623
  20,943
  22,318
  23,751
EBITDA, $m
  132
  171
  439
  754
  1,116
  1,528
  1,988
  2,498
  3,056
  3,662
  4,314
  5,012
  5,755
  6,540
  7,369
  8,239
  9,150
  10,103
  11,097
  12,133
  13,211
  14,333
  15,500
  16,712
  17,973
  19,284
  20,648
  22,066
  23,542
  25,080
  26,681
Interest expense (income), $m
  -34
  20
  33
  49
  67
  88
  111
  137
  165
  197
  230
  267
  305
  346
  390
  436
  484
  534
  587
  642
  699
  758
  820
  884
  951
  1,020
  1,092
  1,167
  1,245
  1,326
  1,410
Earnings before tax, $m
  -255
  38
  263
  527
  832
  1,177
  1,565
  1,994
  2,463
  2,973
  3,522
  4,109
  4,734
  5,395
  6,091
  6,823
  7,590
  8,391
  9,227
  10,099
  11,006
  11,949
  12,930
  13,951
  15,011
  16,114
  17,262
  18,455
  19,698
  20,992
  22,340
Tax expense, $m
  54
  10
  71
  142
  225
  318
  423
  538
  665
  803
  951
  1,109
  1,278
  1,457
  1,645
  1,842
  2,049
  2,266
  2,491
  2,727
  2,972
  3,226
  3,491
  3,767
  4,053
  4,351
  4,661
  4,983
  5,318
  5,668
  6,032
Net income, $m
  -323
  27
  192
  385
  607
  860
  1,142
  1,455
  1,798
  2,170
  2,571
  3,000
  3,456
  3,938
  4,447
  4,981
  5,541
  6,126
  6,736
  7,372
  8,034
  8,723
  9,439
  10,184
  10,958
  11,763
  12,601
  13,472
  14,380
  15,324
  16,309

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
  5,752
  7,267
  9,025
  11,036
  13,303
  15,830
  18,616
  21,657
  24,949
  28,487
  32,266
  36,279
  40,521
  44,988
  49,677
  54,585
  59,711
  65,057
  70,624
  76,416
  82,439
  88,698
  95,203
  101,963
  108,989
  116,293
  123,888
  131,790
  140,014
  148,578
Adjusted assets (=assets-cash), $m
  4,185
  5,752
  7,267
  9,025
  11,036
  13,303
  15,830
  18,616
  21,657
  24,949
  28,487
  32,266
  36,279
  40,521
  44,988
  49,677
  54,585
  59,711
  65,057
  70,624
  76,416
  82,439
  88,698
  95,203
  101,963
  108,989
  116,293
  123,888
  131,790
  140,014
  148,578
Revenue / Adjusted assets
  0.255
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
  0.213
Average production assets, $m
  1,860
  1,135
  1,433
  1,780
  2,177
  2,624
  3,122
  3,672
  4,272
  4,921
  5,619
  6,364
  7,156
  7,992
  8,873
  9,798
  10,766
  11,777
  12,832
  13,930
  15,072
  16,260
  17,495
  18,778
  20,111
  21,497
  22,937
  24,436
  25,994
  27,616
  29,305
Working capital, $m
  57
  75
  94
  117
  143
  173
  206
  242
  281
  324
  370
  419
  471
  526
  585
  645
  709
  776
  845
  918
  993
  1,071
  1,152
  1,237
  1,325
  1,416
  1,511
  1,610
  1,712
  1,819
  1,930
Total debt, $m
  667
  955
  1,399
  1,914
  2,503
  3,168
  3,908
  4,724
  5,615
  6,580
  7,617
  8,724
  9,900
  11,143
  12,452
  13,825
  15,263
  16,765
  18,332
  19,963
  21,660
  23,425
  25,259
  27,165
  29,145
  31,204
  33,344
  35,569
  37,885
  40,294
  42,803
Total liabilities, $m
  1,445
  1,685
  2,129
  2,644
  3,233
  3,898
  4,638
  5,454
  6,345
  7,310
  8,347
  9,454
  10,630
  11,873
  13,182
  14,555
  15,993
  17,495
  19,062
  20,693
  22,390
  24,155
  25,989
  27,895
  29,875
  31,934
  34,074
  36,299
  38,615
  41,024
  43,533
Total equity, $m
  2,821
  4,067
  5,138
  6,381
  7,802
  9,406
  11,192
  13,161
  15,311
  17,639
  20,141
  22,812
  25,649
  28,648
  31,807
  35,122
  38,591
  42,216
  45,995
  49,931
  54,026
  58,284
  62,710
  67,309
  72,088
  77,055
  82,219
  87,589
  93,176
  98,990
  105,045
Total liabilities and equity, $m
  4,266
  5,752
  7,267
  9,025
  11,035
  13,304
  15,830
  18,615
  21,656
  24,949
  28,488
  32,266
  36,279
  40,521
  44,989
  49,677
  54,584
  59,711
  65,057
  70,624
  76,416
  82,439
  88,699
  95,204
  101,963
  108,989
  116,293
  123,888
  131,791
  140,014
  148,578
Debt-to-equity ratio
  0.236
  0.230
  0.270
  0.300
  0.320
  0.340
  0.350
  0.360
  0.370
  0.370
  0.380
  0.380
  0.390
  0.390
  0.390
  0.390
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.410
  0.410
  0.410
  0.410
  0.410
Adjusted equity ratio
  0.668
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707
  0.707

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -323
  27
  192
  385
  607
  860
  1,142
  1,455
  1,798
  2,170
  2,571
  3,000
  3,456
  3,938
  4,447
  4,981
  5,541
  6,126
  6,736
  7,372
  8,034
  8,723
  9,439
  10,184
  10,958
  11,763
  12,601
  13,472
  14,380
  15,324
  16,309
Depreciation, amort., depletion, $m
  0
  113
  143
  178
  218
  262
  312
  367
  427
  492
  562
  636
  716
  799
  887
  980
  1,077
  1,178
  1,283
  1,393
  1,507
  1,626
  1,749
  1,878
  2,011
  2,150
  2,294
  2,444
  2,599
  2,762
  2,931
Funds from operations, $m
  377
  141
  335
  563
  825
  1,122
  1,455
  1,823
  2,225
  2,662
  3,133
  3,636
  4,171
  4,737
  5,334
  5,961
  6,617
  7,303
  8,019
  8,765
  9,541
  10,349
  11,189
  12,062
  12,969
  13,913
  14,895
  15,916
  16,979
  18,086
  19,239
Change in working capital, $m
  -14
  17
  20
  23
  26
  29
  33
  36
  40
  43
  46
  49
  52
  55
  58
  61
  64
  67
  69
  72
  75
  78
  81
  85
  88
  91
  95
  99
  103
  107
  111
Cash from operations, $m
  391
  1,001
  315
  540
  799
  1,092
  1,422
  1,786
  2,186
  2,620
  3,087
  3,587
  4,119
  4,682
  5,276
  5,900
  6,553
  7,237
  7,950
  8,693
  9,466
  10,271
  11,107
  11,977
  12,882
  13,822
  14,800
  15,817
  16,876
  17,979
  19,128
Maintenance CAPEX, $m
  0
  -88
  -113
  -143
  -178
  -218
  -262
  -312
  -367
  -427
  -492
  -562
  -636
  -716
  -799
  -887
  -980
  -1,077
  -1,178
  -1,283
  -1,393
  -1,507
  -1,626
  -1,749
  -1,878
  -2,011
  -2,150
  -2,294
  -2,444
  -2,599
  -2,762
New CAPEX, $m
  -372
  -253
  -299
  -347
  -397
  -447
  -498
  -549
  -600
  -649
  -698
  -745
  -792
  -837
  -881
  -925
  -968
  -1,011
  -1,054
  -1,098
  -1,142
  -1,188
  -1,235
  -1,283
  -1,333
  -1,386
  -1,441
  -1,498
  -1,559
  -1,622
  -1,689
Cash from investing activities, $m
  -365
  -341
  -412
  -490
  -575
  -665
  -760
  -861
  -967
  -1,076
  -1,190
  -1,307
  -1,428
  -1,553
  -1,680
  -1,812
  -1,948
  -2,088
  -2,232
  -2,381
  -2,535
  -2,695
  -2,861
  -3,032
  -3,211
  -3,397
  -3,591
  -3,792
  -4,003
  -4,221
  -4,451
Free cash flow, $m
  26
  661
  -97
  50
  224
  428
  661
  925
  1,219
  1,543
  1,897
  2,280
  2,691
  3,130
  3,596
  4,088
  4,606
  5,149
  5,718
  6,311
  6,931
  7,576
  8,247
  8,945
  9,670
  10,425
  11,210
  12,026
  12,874
  13,758
  14,677
Issuance/(repayment) of debt, $m
  -1
  378
  444
  515
  589
  664
  740
  816
  891
  965
  1,037
  1,107
  1,176
  1,243
  1,309
  1,374
  1,438
  1,502
  1,566
  1,631
  1,697
  1,765
  1,834
  1,906
  1,981
  2,059
  2,140
  2,225
  2,315
  2,410
  2,509
Issuance/(repurchase) of shares, $m
  -1
  0
  724
  678
  608
  511
  385
  228
  40
  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  
  -25
  378
  1,168
  1,193
  1,197
  1,175
  1,125
  1,044
  931
  965
  1,037
  1,107
  1,176
  1,243
  1,309
  1,374
  1,438
  1,502
  1,566
  1,631
  1,697
  1,765
  1,834
  1,906
  1,981
  2,059
  2,140
  2,225
  2,315
  2,410
  2,509
Total cash flow (excl. dividends), $m
  2
  1,039
  347
  565
  813
  1,092
  1,401
  1,741
  2,110
  2,508
  2,934
  3,387
  3,867
  4,373
  4,905
  5,461
  6,044
  6,651
  7,284
  7,943
  8,628
  9,340
  10,081
  10,851
  11,651
  12,484
  13,350
  14,251
  15,189
  16,167
  17,186
Retained Cash Flow (-), $m
  340
  -906
  -1,071
  -1,243
  -1,421
  -1,603
  -1,787
  -1,969
  -2,150
  -2,328
  -2,502
  -2,671
  -2,837
  -2,999
  -3,158
  -3,315
  -3,470
  -3,624
  -3,779
  -3,936
  -4,095
  -4,258
  -4,426
  -4,599
  -4,779
  -4,967
  -5,164
  -5,370
  -5,587
  -5,814
  -6,055
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
 
  133
  0
  0
  0
  0
  0
  0
  0
  180
  432
  716
  1,030
  1,374
  1,746
  2,147
  2,574
  3,027
  3,504
  4,007
  4,533
  5,082
  5,655
  6,252
  6,872
  7,516
  8,186
  8,881
  9,603
  10,353
  11,132
Discount rate, %
 
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
 
  127
  0
  0
  0
  0
  0
  0
  0
  98
  214
  318
  407
  479
  532
  565
  579
  575
  556
  523
  480
  431
  377
  323
  270
  221
  176
  137
  104
  77
  55
Current shareholders' claim on cash, %
  100
  100.0
  85.1
  75.4
  68.9
  64.7
  62.2
  61.0
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8
  60.8

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 -9.1
Price to Sales 2.8
Price to Book 1
Price to Tangible Book
Price to Cash Flow 7.5
Price to Free Cash Flow 154.8
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 $952 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 28.7% 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 4.7%, 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 18.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $913 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 92.6%.

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 6.1%. 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 - $3161 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 $3.2 billion.


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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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