Intrinsic value of Constellium Cl A - CSTM

Previous Close

$8.05

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

  Value-price divergence*

-131%

Previous close

$8.05

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

 
Value-price divergence*

-131%

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

We calculate the intrinsic value of CSTM 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 0.8

 

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, %
  -7.96
  15.50
  14.45
  13.51
  12.65
  11.89
  11.20
  10.58
  10.02
  9.52
  9.07
  8.66
  8.30
  7.97
  7.67
  7.40
  7.16
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.03
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.49
Revenue, $m
  5,006
  5,782
  6,617
  7,511
  8,462
  9,468
  10,528
  11,642
  12,809
  14,028
  15,300
  16,625
  18,004
  19,438
  20,929
  22,478
  24,088
  25,761
  27,500
  29,309
  31,190
  33,148
  35,186
  37,309
  39,522
  41,829
  44,235
  46,747
  49,370
  52,110
  54,973
Variable operating expenses, $m
 
  6,254
  7,151
  8,110
  9,131
  10,210
  11,349
  12,544
  13,797
  15,105
  16,471
  17,845
  19,325
  20,865
  22,465
  24,128
  25,856
  27,651
  29,518
  31,459
  33,478
  35,580
  37,767
  40,046
  42,421
  44,898
  47,481
  50,177
  52,992
  55,933
  59,007
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
  4,746
  6,254
  7,151
  8,110
  9,131
  10,210
  11,349
  12,544
  13,797
  15,105
  16,471
  17,845
  19,325
  20,865
  22,465
  24,128
  25,856
  27,651
  29,518
  31,459
  33,478
  35,580
  37,767
  40,046
  42,421
  44,898
  47,481
  50,177
  52,992
  55,933
  59,007
Operating income, $m
  260
  -472
  -534
  -599
  -669
  -743
  -821
  -902
  -988
  -1,077
  -1,171
  -1,220
  -1,321
  -1,426
  -1,536
  -1,649
  -1,767
  -1,890
  -2,018
  -2,150
  -2,288
  -2,432
  -2,582
  -2,737
  -2,900
  -3,069
  -3,246
  -3,430
  -3,622
  -3,823
  -4,033
EBITDA, $m
  424
  -280
  -321
  -364
  -410
  -459
  -510
  -564
  -621
  -680
  -741
  -806
  -872
  -942
  -1,014
  -1,089
  -1,167
  -1,248
  -1,332
  -1,420
  -1,511
  -1,606
  -1,705
  -1,808
  -1,915
  -2,027
  -2,143
  -2,265
  -2,392
  -2,525
  -2,664
Interest expense (income), $m
  184
  193
  159
  204
  251
  302
  355
  412
  471
  533
  598
  666
  736
  810
  886
  965
  1,048
  1,133
  1,222
  1,315
  1,411
  1,511
  1,615
  1,723
  1,836
  1,954
  2,077
  2,205
  2,338
  2,478
  2,624
Earnings before tax, $m
  69
  -665
  -693
  -803
  -920
  -1,045
  -1,176
  -1,314
  -1,459
  -1,611
  -1,769
  -1,885
  -2,057
  -2,236
  -2,421
  -2,614
  -2,815
  -3,023
  -3,240
  -3,465
  -3,699
  -3,943
  -4,197
  -4,461
  -4,736
  -5,023
  -5,322
  -5,635
  -5,961
  -6,301
  -6,657
Tax expense, $m
  73
  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
  -4
  -665
  -693
  -803
  -920
  -1,045
  -1,176
  -1,314
  -1,459
  -1,611
  -1,769
  -1,885
  -2,057
  -2,236
  -2,421
  -2,614
  -2,815
  -3,023
  -3,240
  -3,465
  -3,699
  -3,943
  -4,197
  -4,461
  -4,736
  -5,023
  -5,322
  -5,635
  -5,961
  -6,301
  -6,657

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  490
  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
  3,997
  4,618
  5,285
  5,999
  6,758
  7,562
  8,409
  9,299
  10,231
  11,204
  12,220
  13,279
  14,380
  15,526
  16,717
  17,954
  19,240
  20,576
  21,965
  23,410
  24,912
  26,476
  28,104
  29,799
  31,567
  33,410
  35,332
  37,338
  39,433
  41,621
  43,908
Adjusted assets (=assets-cash), $m
  3,507
  4,618
  5,285
  5,999
  6,758
  7,562
  8,409
  9,299
  10,231
  11,204
  12,220
  13,279
  14,380
  15,526
  16,717
  17,954
  19,240
  20,576
  21,965
  23,410
  24,912
  26,476
  28,104
  29,799
  31,567
  33,410
  35,332
  37,338
  39,433
  41,621
  43,908
Revenue / Adjusted assets
  1.427
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
  1.252
Average production assets, $m
  1,524
  1,758
  2,012
  2,283
  2,572
  2,878
  3,201
  3,539
  3,894
  4,265
  4,651
  5,054
  5,473
  5,909
  6,362
  6,833
  7,323
  7,831
  8,360
  8,910
  9,482
  10,077
  10,696
  11,342
  12,015
  12,716
  13,448
  14,211
  15,009
  15,841
  16,712
Working capital, $m
  396
  23
  26
  30
  34
  38
  42
  47
  51
  56
  61
  67
  72
  78
  84
  90
  96
  103
  110
  117
  125
  133
  141
  149
  158
  167
  177
  187
  197
  208
  220
Total debt, $m
  2,605
  2,153
  2,754
  3,396
  4,080
  4,803
  5,565
  6,366
  7,204
  8,081
  8,995
  9,948
  10,939
  11,970
  13,042
  14,156
  15,313
  16,515
  17,766
  19,066
  20,418
  21,825
  23,290
  24,817
  26,407
  28,066
  29,796
  31,601
  33,487
  35,456
  37,514
Total liabilities, $m
  4,608
  4,156
  4,757
  5,399
  6,083
  6,806
  7,568
  8,369
  9,207
  10,084
  10,998
  11,951
  12,942
  13,973
  15,045
  16,159
  17,316
  18,518
  19,769
  21,069
  22,421
  23,828
  25,293
  26,820
  28,410
  30,069
  31,799
  33,604
  35,490
  37,459
  39,517
Total equity, $m
  -611
  462
  529
  600
  676
  756
  841
  930
  1,023
  1,120
  1,222
  1,328
  1,438
  1,553
  1,672
  1,795
  1,924
  2,058
  2,197
  2,341
  2,491
  2,648
  2,810
  2,980
  3,157
  3,341
  3,533
  3,734
  3,943
  4,162
  4,391
Total liabilities and equity, $m
  3,997
  4,618
  5,286
  5,999
  6,759
  7,562
  8,409
  9,299
  10,230
  11,204
  12,220
  13,279
  14,380
  15,526
  16,717
  17,954
  19,240
  20,576
  21,966
  23,410
  24,912
  26,476
  28,103
  29,800
  31,567
  33,410
  35,332
  37,338
  39,433
  41,621
  43,908
Debt-to-equity ratio
  -4.264
  4.660
  5.210
  5.660
  6.040
  6.350
  6.620
  6.850
  7.040
  7.210
  7.360
  7.490
  7.610
  7.710
  7.800
  7.880
  7.960
  8.030
  8.090
  8.140
  8.200
  8.240
  8.290
  8.330
  8.370
  8.400
  8.430
  8.460
  8.490
  8.520
  8.540
Adjusted equity ratio
  -0.314
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -4
  -665
  -693
  -803
  -920
  -1,045
  -1,176
  -1,314
  -1,459
  -1,611
  -1,769
  -1,885
  -2,057
  -2,236
  -2,421
  -2,614
  -2,815
  -3,023
  -3,240
  -3,465
  -3,699
  -3,943
  -4,197
  -4,461
  -4,736
  -5,023
  -5,322
  -5,635
  -5,961
  -6,301
  -6,657
Depreciation, amort., depletion, $m
  164
  192
  213
  235
  259
  284
  311
  338
  367
  398
  429
  414
  449
  484
  522
  560
  600
  642
  685
  730
  777
  826
  877
  930
  985
  1,042
  1,102
  1,165
  1,230
  1,298
  1,370
Funds from operations, $m
  -77
  -473
  -480
  -568
  -661
  -761
  -866
  -976
  -1,092
  -1,213
  -1,339
  -1,471
  -1,609
  -1,751
  -1,900
  -2,054
  -2,215
  -2,381
  -2,555
  -2,735
  -2,922
  -3,117
  -3,320
  -3,531
  -3,751
  -3,981
  -4,220
  -4,470
  -4,731
  -5,003
  -5,287
Change in working capital, $m
  -170
  3
  3
  4
  4
  4
  4
  4
  5
  5
  5
  5
  6
  6
  6
  6
  6
  7
  7
  7
  8
  8
  8
  8
  9
  9
  10
  10
  10
  11
  11
Cash from operations, $m
  93
  -476
  -483
  -571
  -665
  -765
  -870
  -980
  -1,096
  -1,218
  -1,344
  -1,477
  -1,614
  -1,757
  -1,906
  -2,060
  -2,221
  -2,388
  -2,562
  -2,742
  -2,930
  -3,125
  -3,328
  -3,540
  -3,760
  -3,990
  -4,230
  -4,480
  -4,741
  -5,014
  -5,299
Maintenance CAPEX, $m
  0
  -125
  -144
  -165
  -187
  -211
  -236
  -262
  -290
  -319
  -350
  -381
  -414
  -449
  -484
  -522
  -560
  -600
  -642
  -685
  -730
  -777
  -826
  -877
  -930
  -985
  -1,042
  -1,102
  -1,165
  -1,230
  -1,298
New CAPEX, $m
  -375
  -234
  -254
  -272
  -289
  -306
  -322
  -339
  -355
  -371
  -387
  -403
  -419
  -436
  -453
  -471
  -489
  -509
  -529
  -550
  -572
  -595
  -620
  -645
  -673
  -701
  -732
  -764
  -797
  -833
  -870
Cash from investing activities, $m
  -385
  -359
  -398
  -437
  -476
  -517
  -558
  -601
  -645
  -690
  -737
  -784
  -833
  -885
  -937
  -993
  -1,049
  -1,109
  -1,171
  -1,235
  -1,302
  -1,372
  -1,446
  -1,522
  -1,603
  -1,686
  -1,774
  -1,866
  -1,962
  -2,063
  -2,168
Free cash flow, $m
  -292
  -835
  -881
  -1,008
  -1,141
  -1,281
  -1,428
  -1,581
  -1,741
  -1,908
  -2,081
  -2,261
  -2,448
  -2,642
  -2,843
  -3,053
  -3,271
  -3,497
  -3,732
  -3,977
  -4,232
  -4,497
  -4,774
  -5,062
  -5,363
  -5,676
  -6,004
  -6,346
  -6,703
  -7,077
  -7,468
Issuance/(repayment) of debt, $m
  -229
  -452
  601
  642
  683
  723
  762
  801
  839
  877
  914
  953
  991
  1,031
  1,072
  1,114
  1,157
  1,203
  1,250
  1,300
  1,352
  1,407
  1,465
  1,526
  1,591
  1,658
  1,730
  1,806
  1,885
  1,970
  2,058
Issuance/(repurchase) of shares, $m
  396
  1,738
  760
  874
  996
  1,125
  1,261
  1,403
  1,552
  1,708
  1,870
  1,991
  2,167
  2,350
  2,540
  2,738
  2,943
  3,157
  3,379
  3,610
  3,850
  4,099
  4,359
  4,630
  4,913
  5,207
  5,515
  5,835
  6,170
  6,520
  6,886
Cash from financing (excl. dividends), $m  
  153
  1,286
  1,361
  1,516
  1,679
  1,848
  2,023
  2,204
  2,391
  2,585
  2,784
  2,944
  3,158
  3,381
  3,612
  3,852
  4,100
  4,360
  4,629
  4,910
  5,202
  5,506
  5,824
  6,156
  6,504
  6,865
  7,245
  7,641
  8,055
  8,490
  8,944
Total cash flow (excl. dividends), $m
  -136
  452
  479
  509
  538
  567
  595
  623
  650
  677
  704
  683
  711
  739
  769
  799
  830
  863
  897
  932
  970
  1,009
  1,051
  1,095
  1,141
  1,190
  1,241
  1,295
  1,352
  1,413
  1,476
Retained Cash Flow (-), $m
  29
  -1,738
  -760
  -874
  -996
  -1,125
  -1,261
  -1,403
  -1,552
  -1,708
  -1,870
  -1,991
  -2,167
  -2,350
  -2,540
  -2,738
  -2,943
  -3,157
  -3,379
  -3,610
  -3,850
  -4,099
  -4,359
  -4,630
  -4,913
  -5,207
  -5,515
  -5,835
  -6,170
  -6,520
  -6,886
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
 
  -1,286
  -281
  -365
  -458
  -558
  -666
  -781
  -902
  -1,031
  -1,166
  -1,308
  -1,456
  -1,611
  -1,772
  -1,939
  -2,113
  -2,294
  -2,482
  -2,677
  -2,880
  -3,090
  -3,309
  -3,536
  -3,772
  -4,018
  -4,274
  -4,540
  -4,818
  -5,107
  -5,410
Discount rate, %
 
  14.30
  15.02
  15.77
  16.55
  17.38
  18.25
  19.16
  20.12
  21.13
  22.18
  23.29
  24.46
  25.68
  26.96
  28.31
  29.73
  31.22
  32.78
  34.41
  36.14
  37.94
  39.84
  41.83
  43.92
  46.12
  48.42
  50.85
  53.39
  56.06
  58.86
PV of cash for distribution, $m
 
  -1,125
  -212
  -236
  -248
  -250
  -244
  -229
  -208
  -184
  -157
  -131
  -105
  -83
  -63
  -46
  -33
  -23
  -15
  -10
  -6
  -4
  -2
  -1
  -1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  18.9
  7.1
  2.7
  1.0
  0.4
  0.1
  0.1
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Constellium N.V. engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products for the aerospace, packaging, and automotive end-markets. The company operates in three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, and foil stock for the flexible packaging market. It also supplies automotive sheets, heat exchangers, and sheet and coils for the building and constructions markets. The Aerospace & Transportation segment provides aluminum and specialty materials products, including aerospace plates and sheets, aerospace wingskins, plates for general engineering, and sheets for transportation applications, as well as other extrusions and precision casting products. This segment serves aerospace, transportation, industry, and defense sectors. The Automotive Structures & Industry segment offers crash management systems, side impact beams, body structures, and cockpit carriers; and soft and hard alloy extrusions, and large profiles for automotive, rail, road, energy, building, and industrial applications. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. The company sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, Italy, and the United States, as well as Tokyo, Shanghai, Seoul, and Singapore. Constellium N.V. was incorporated in 2010 and is headquartered in Schiphol-Rijk, the Netherlands.

FINANCIAL RATIOS  of  Constellium Cl A (CSTM)

Valuation Ratios
P/E Ratio -212.5
Price to Sales 0.2
Price to Book -1.4
Price to Tangible Book
Price to Cash Flow 9.1
Price to Free Cash Flow -3
Growth Rates
Sales Growth Rate -8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.6%
Cap. Spend. - 3 Yr. Gr. Rate 19.8%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity -407.9%
Total Debt to Equity -426.4%
Interest Coverage 1
Management Effectiveness
Return On Assets -0.4%
Ret/ On Assets - 3 Yr. Avg. -3.3%
Return On Total Capital -0.2%
Ret/ On T. Cap. - 3 Yr. Avg. -10.7%
Return On Equity 0.7%
Return On Equity - 3 Yr. Avg. -264.8%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 10.9%
Gross Margin - 3 Yr. Avg. 10.9%
EBITDA Margin 8.3%
EBITDA Margin - 3 Yr. Avg. 2.5%
Operating Margin 5.2%
Oper. Margin - 3 Yr. Avg. 0.3%
Pre-Tax Margin 1.4%
Pre-Tax Margin - 3 Yr. Avg. -2.5%
Net Profit Margin -0.1%
Net Profit Margin - 3 Yr. Avg. -3.1%
Effective Tax Rate 105.8%
Eff/ Tax Rate - 3 Yr. Avg. 50.6%
Payout Ratio 0%

CSTM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CSTM stock intrinsic value calculation we used $5006 million for the last fiscal year's total revenue generated by Constellium Cl A. The default revenue input number comes from 2016 income statement of Constellium Cl A. 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 CSTM stock valuation model: a) initial revenue growth rate of 15.5% 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 14.3%, whose default value for CSTM is calculated based on our internal credit rating of Constellium Cl A, 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 Constellium Cl A.
    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 CSTM stock the variable cost ratio is equal to 108.3%.

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 CSTM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 7.4% for Constellium Cl A.

Corporate tax rate of 27% is the nominal tax rate for Constellium Cl A. 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 CSTM 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 CSTM are equal to 30.4%.

Life of production assets of 12.2 years is the average useful life of capital assets used in Constellium Cl A 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 CSTM is equal to 0.4%. 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 - $-611 million for Constellium Cl A - 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 102.951 million for Constellium Cl A 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 Constellium Cl A at the current share price and the inputted number of shares is $0.8 billion.

RELATED COMPANIES Price Int.Val. Rating
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PKOH Park-Ohio Hold 41.10 42.72  hold

COMPANY NEWS

▶ Constellium opens new Georgia plant (SLIDESHOW)   [May-12-17 06:40AM  American City Business Journals]
▶ ETFs with exposure to Constellium NV : May 5, 2017   [May-05-17 04:01PM  Capital Cube]
▶ Constellium Posts Annual General Meeting Materials   [May-03-17 04:05PM  PR Newswire]
▶ Constellium NV Value Analysis (NYSE:CSTM) : May 2, 2017   [May-02-17 05:11PM  Capital Cube]
▶ Constellium tops Street 1Q forecasts   [Apr-27-17 05:00AM  Associated Press]
▶ Why Constellium Stock Just Jumped Nearly 9%   [Apr-25-17 05:47PM  Motley Fool]
▶ ETFs with exposure to Constellium NV : April 13, 2017   [Apr-13-17 12:33PM  Capital Cube]
▶ 3 Industrial Stocks Struggling in March   [Mar-31-17 11:04AM  Motley Fool]
▶ 3 Industrial Stocks Struggling in March   [11:04AM  at Motley Fool]
▶ ETFs with exposure to Constellium NV : March 30, 2017   [Mar-29-17 08:29PM  Capital Cube]
▶ Alcoa Will Be an Excellent Income Stock to Buy This Year   [Mar-27-17 01:48PM  TheStreet.com]
▶ Constellium Publishes Dutch Annual Report 2016   [Mar-23-17 05:00PM  PR Newswire]
▶ 4 Stocks Under $10 Setting Up to Break Out   [Mar-16-17 10:15PM  TheStreet.com]
▶ Why Constellium Stock Is Down 12% Today   [12:00PM  Motley Fool]
▶ Why Constellium Stock Is Down 12% Today   [12:00PM  at Motley Fool]
▶ Why Constellium NV's Shares Popped 15% Today   [Feb-13-17 04:55PM  at Motley Fool]
▶ Constellium Prices Notes Offering   [Feb-02-17 04:20PM  PR Newswire]
▶ Constellium Launches Notes Offering   [04:40PM  PR Newswire]
▶ Is Encore Wire Corporation (WIRE) A Good Stock To Buy?   [Dec-12-16 05:12PM  at Insider Monkey]
▶ Constellium NV (CSTM): This Metric Is Giving A Huge Buy Signal   [Nov-30-16 09:16PM  at Insider Monkey]
▶ [$$] Noranda Aluminum Announces Winner in Bankruptcy Auction   [Oct-21-16 03:54PM  at The Wall Street Journal]
▶ Investor Alert: Can Arconic Navigate Its Short-Term Challenges?   [Sep-22-16 10:04AM  at Market Realist]
▶ Do the Markets Really Want Alcoa to Split into 2 Companies?   [Sep-20-16 04:30PM  at Market Realist]
Stock chart of CSTM Financial statements of CSTM Annual reports of CSTM
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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