Intrinsic value of Fibria Celulose ADR - FBR

Previous Close

$18.77

  Intrinsic Value

$37.32

stock screener

  Rating & Target

str. buy

+99%

Previous close

$18.77

 
Intrinsic value

$37.32

 
Up/down potential

+99%

 
Rating

str. buy

We calculate the intrinsic value of FBR 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -4.61
  23.70
  21.83
  20.15
  18.63
  17.27
  16.04
  14.94
  13.94
  13.05
  12.24
  11.52
  10.87
  10.28
  9.75
  9.28
  8.85
  8.47
  8.12
  7.81
  7.53
  7.27
  7.05
  6.84
  6.66
  6.49
  6.34
  6.21
  6.09
  5.98
  5.88
Revenue, $m
  3,040
  3,760
  4,581
  5,504
  6,530
  7,658
  8,886
  10,214
  11,638
  13,156
  14,767
  16,469
  18,258
  20,136
  22,100
  24,150
  26,287
  28,513
  30,827
  33,234
  35,735
  38,334
  41,036
  43,843
  46,762
  49,797
  52,956
  56,243
  59,667
  63,235
  66,953
Variable operating expenses, $m
 
  2,413
  2,910
  3,469
  4,091
  4,774
  5,519
  6,323
  7,186
  8,106
  9,083
  9,980
  11,064
  12,202
  13,392
  14,635
  15,930
  17,278
  18,681
  20,139
  21,655
  23,230
  24,867
  26,568
  28,337
  30,177
  32,091
  34,083
  36,158
  38,319
  40,573
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
  2,589
  2,413
  2,910
  3,469
  4,091
  4,774
  5,519
  6,323
  7,186
  8,106
  9,083
  9,980
  11,064
  12,202
  13,392
  14,635
  15,930
  17,278
  18,681
  20,139
  21,655
  23,230
  24,867
  26,568
  28,337
  30,177
  32,091
  34,083
  36,158
  38,319
  40,573
Operating income, $m
  451
  1,348
  1,671
  2,035
  2,439
  2,883
  3,367
  3,890
  4,452
  5,050
  5,685
  6,489
  7,194
  7,934
  8,708
  9,515
  10,358
  11,234
  12,146
  13,095
  14,080
  15,104
  16,169
  17,275
  18,425
  19,621
  20,865
  22,161
  23,510
  24,915
  26,380
EBITDA, $m
  1,078
  2,094
  2,551
  3,065
  3,636
  4,264
  4,949
  5,688
  6,481
  7,327
  8,224
  9,171
  10,168
  11,213
  12,307
  13,449
  14,639
  15,878
  17,167
  18,508
  19,900
  21,348
  22,852
  24,416
  26,041
  27,731
  29,490
  31,321
  33,228
  35,214
  37,285
Interest expense (income), $m
  34
  166
  218
  278
  344
  418
  499
  588
  683
  786
  895
  1,012
  1,134
  1,263
  1,398
  1,540
  1,688
  1,842
  2,002
  2,169
  2,342
  2,522
  2,710
  2,904
  3,107
  3,317
  3,536
  3,763
  4,000
  4,247
  4,504
Earnings before tax, $m
  962
  1,182
  1,453
  1,757
  2,095
  2,465
  2,868
  3,303
  3,768
  4,264
  4,789
  5,477
  6,060
  6,671
  7,309
  7,976
  8,670
  9,393
  10,144
  10,926
  11,738
  12,582
  13,459
  14,370
  15,318
  16,304
  17,330
  18,397
  19,509
  20,668
  21,876
Tax expense, $m
  436
  319
  392
  475
  566
  666
  774
  892
  1,017
  1,151
  1,293
  1,479
  1,636
  1,801
  1,973
  2,153
  2,341
  2,536
  2,739
  2,950
  3,169
  3,397
  3,634
  3,880
  4,136
  4,402
  4,679
  4,967
  5,268
  5,580
  5,907
Net income, $m
  523
  863
  1,061
  1,283
  1,529
  1,800
  2,094
  2,411
  2,751
  3,113
  3,496
  3,998
  4,424
  4,870
  5,336
  5,822
  6,329
  6,857
  7,405
  7,976
  8,569
  9,185
  9,825
  10,490
  11,182
  11,902
  12,651
  13,430
  14,242
  15,088
  15,970

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,484
  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
  10,889
  11,642
  14,184
  17,042
  20,217
  23,708
  27,511
  31,621
  36,030
  40,732
  45,719
  50,986
  56,528
  62,340
  68,420
  74,768
  81,385
  88,274
  95,441
  102,892
  110,636
  118,683
  127,045
  135,737
  144,773
  154,172
  163,950
  174,128
  184,728
  195,772
  207,285
Adjusted assets (=assets-cash), $m
  9,405
  11,642
  14,184
  17,042
  20,217
  23,708
  27,511
  31,621
  36,030
  40,732
  45,719
  50,986
  56,528
  62,340
  68,420
  74,768
  81,385
  88,274
  95,441
  102,892
  110,636
  118,683
  127,045
  135,737
  144,773
  154,172
  163,950
  174,128
  184,728
  195,772
  207,285
Revenue / Adjusted assets
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
Average production assets, $m
  5,000
  6,186
  7,536
  9,055
  10,742
  12,597
  14,618
  16,801
  19,144
  21,642
  24,292
  27,091
  30,035
  33,123
  36,354
  39,727
  43,243
  46,903
  50,711
  54,670
  58,785
  63,060
  67,504
  72,122
  76,923
  81,917
  87,112
  92,520
  98,153
  104,021
  110,138
Working capital, $m
  1,105
  -109
  -133
  -160
  -189
  -222
  -258
  -296
  -337
  -382
  -428
  -478
  -529
  -584
  -641
  -700
  -762
  -827
  -894
  -964
  -1,036
  -1,112
  -1,190
  -1,271
  -1,356
  -1,444
  -1,536
  -1,631
  -1,730
  -1,834
  -1,942
Total debt, $m
  5,038
  6,239
  7,929
  9,830
  11,941
  14,263
  16,792
  19,525
  22,457
  25,584
  28,900
  32,403
  36,088
  39,953
  43,996
  48,218
  52,618
  57,199
  61,965
  66,920
  72,070
  77,421
  82,982
  88,762
  94,771
  101,021
  107,524
  114,292
  121,341
  128,686
  136,342
Total liabilities, $m
  6,541
  7,742
  9,432
  11,333
  13,444
  15,766
  18,295
  21,028
  23,960
  27,087
  30,403
  33,906
  37,591
  41,456
  45,499
  49,721
  54,121
  58,702
  63,468
  68,423
  73,573
  78,924
  84,485
  90,265
  96,274
  102,524
  109,027
  115,795
  122,844
  130,189
  137,845
Total equity, $m
  4,348
  3,900
  4,752
  5,709
  6,773
  7,942
  9,216
  10,593
  12,070
  13,645
  15,316
  17,080
  18,937
  20,884
  22,921
  25,047
  27,264
  29,572
  31,973
  34,469
  37,063
  39,759
  42,560
  45,472
  48,499
  51,647
  54,923
  58,333
  61,884
  65,584
  69,441
Total liabilities and equity, $m
  10,889
  11,642
  14,184
  17,042
  20,217
  23,708
  27,511
  31,621
  36,030
  40,732
  45,719
  50,986
  56,528
  62,340
  68,420
  74,768
  81,385
  88,274
  95,441
  102,892
  110,636
  118,683
  127,045
  135,737
  144,773
  154,171
  163,950
  174,128
  184,728
  195,773
  207,286
Debt-to-equity ratio
  1.159
  1.600
  1.670
  1.720
  1.760
  1.800
  1.820
  1.840
  1.860
  1.870
  1.890
  1.900
  1.910
  1.910
  1.920
  1.930
  1.930
  1.930
  1.940
  1.940
  1.940
  1.950
  1.950
  1.950
  1.950
  1.960
  1.960
  1.960
  1.960
  1.960
  1.960
Adjusted equity ratio
  0.305
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  523
  863
  1,061
  1,283
  1,529
  1,800
  2,094
  2,411
  2,751
  3,113
  3,496
  3,998
  4,424
  4,870
  5,336
  5,822
  6,329
  6,857
  7,405
  7,976
  8,569
  9,185
  9,825
  10,490
  11,182
  11,902
  12,651
  13,430
  14,242
  15,088
  15,970
Depreciation, amort., depletion, $m
  627
  746
  880
  1,030
  1,197
  1,381
  1,581
  1,797
  2,029
  2,277
  2,539
  2,682
  2,974
  3,280
  3,599
  3,933
  4,281
  4,644
  5,021
  5,413
  5,820
  6,244
  6,684
  7,141
  7,616
  8,111
  8,625
  9,160
  9,718
  10,299
  10,905
Funds from operations, $m
  1,307
  1,609
  1,941
  2,313
  2,727
  3,181
  3,675
  4,208
  4,780
  5,389
  6,035
  6,681
  7,398
  8,149
  8,935
  9,756
  10,611
  11,501
  12,426
  13,389
  14,389
  15,428
  16,508
  17,631
  18,798
  20,012
  21,276
  22,590
  23,960
  25,387
  26,875
Change in working capital, $m
  66
  -21
  -24
  -27
  -30
  -33
  -36
  -38
  -41
  -44
  -47
  -49
  -52
  -54
  -57
  -59
  -62
  -65
  -67
  -70
  -73
  -75
  -78
  -81
  -85
  -88
  -92
  -95
  -99
  -103
  -108
Cash from operations, $m
  1,241
  1,630
  1,964
  2,340
  2,756
  3,214
  3,711
  4,247
  4,821
  5,433
  6,082
  6,730
  7,449
  8,204
  8,992
  9,815
  10,672
  11,565
  12,493
  13,459
  14,462
  15,504
  16,587
  17,713
  18,883
  20,100
  21,367
  22,686
  24,059
  25,490
  26,982
Maintenance CAPEX, $m
  0
  -495
  -612
  -746
  -897
  -1,064
  -1,247
  -1,447
  -1,663
  -1,895
  -2,143
  -2,405
  -2,682
  -2,974
  -3,280
  -3,599
  -3,933
  -4,281
  -4,644
  -5,021
  -5,413
  -5,820
  -6,244
  -6,684
  -7,141
  -7,616
  -8,111
  -8,625
  -9,160
  -9,718
  -10,299
New CAPEX, $m
  -1,925
  -1,186
  -1,350
  -1,518
  -1,687
  -1,855
  -2,021
  -2,184
  -2,343
  -2,498
  -2,650
  -2,799
  -2,944
  -3,088
  -3,231
  -3,373
  -3,516
  -3,661
  -3,808
  -3,959
  -4,115
  -4,276
  -4,443
  -4,618
  -4,801
  -4,994
  -5,196
  -5,408
  -5,632
  -5,868
  -6,117
Cash from investing activities, $m
  -2,172
  -1,681
  -1,962
  -2,264
  -2,584
  -2,919
  -3,268
  -3,631
  -4,006
  -4,393
  -4,793
  -5,204
  -5,626
  -6,062
  -6,511
  -6,972
  -7,449
  -7,942
  -8,452
  -8,980
  -9,528
  -10,096
  -10,687
  -11,302
  -11,942
  -12,610
  -13,307
  -14,033
  -14,792
  -15,586
  -16,416
Free cash flow, $m
  -931
  -51
  2
  76
  173
  295
  443
  616
  815
  1,040
  1,289
  1,526
  1,823
  2,142
  2,482
  2,843
  3,223
  3,623
  4,042
  4,479
  4,934
  5,408
  5,900
  6,411
  6,941
  7,491
  8,061
  8,653
  9,267
  9,904
  10,566
Issuance/(repayment) of debt, $m
  1,579
  1,492
  1,690
  1,900
  2,112
  2,322
  2,529
  2,733
  2,932
  3,127
  3,317
  3,503
  3,685
  3,865
  4,043
  4,221
  4,400
  4,581
  4,766
  4,955
  5,150
  5,351
  5,561
  5,780
  6,009
  6,250
  6,503
  6,769
  7,049
  7,344
  7,656
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,578
  1,492
  1,690
  1,900
  2,112
  2,322
  2,529
  2,733
  2,932
  3,127
  3,317
  3,503
  3,685
  3,865
  4,043
  4,221
  4,400
  4,581
  4,766
  4,955
  5,150
  5,351
  5,561
  5,780
  6,009
  6,250
  6,503
  6,769
  7,049
  7,344
  7,656
Total cash flow (excl. dividends), $m
  597
  1,441
  1,692
  1,976
  2,284
  2,617
  2,972
  3,349
  3,747
  4,166
  4,606
  5,029
  5,508
  6,007
  6,525
  7,064
  7,624
  8,205
  8,808
  9,434
  10,084
  10,759
  11,461
  12,191
  12,950
  13,740
  14,564
  15,421
  16,316
  17,249
  18,222
Retained Cash Flow (-), $m
  -316
  -745
  -851
  -957
  -1,064
  -1,170
  -1,274
  -1,377
  -1,477
  -1,575
  -1,671
  -1,764
  -1,856
  -1,947
  -2,037
  -2,127
  -2,217
  -2,308
  -2,401
  -2,496
  -2,594
  -2,696
  -2,801
  -2,912
  -3,027
  -3,148
  -3,276
  -3,410
  -3,551
  -3,700
  -3,857
Prev. year cash balance distribution, $m
 
  1,193
  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
 
  1,889
  840
  1,019
  1,221
  1,447
  1,698
  1,972
  2,270
  2,591
  2,935
  3,264
  3,652
  4,060
  4,488
  4,937
  5,407
  5,897
  6,407
  6,938
  7,490
  8,063
  8,660
  9,279
  9,923
  10,592
  11,288
  12,012
  12,765
  13,549
  14,365
Discount rate, %
 
  6.20
  6.51
  6.84
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.04
  20.00
  21.00
  22.05
  23.15
  24.30
  25.52
PV of cash for distribution, $m
 
  1,779
  741
  835
  925
  1,006
  1,075
  1,128
  1,163
  1,177
  1,172
  1,133
  1,089
  1,029
  955
  869
  777
  682
  586
  494
  408
  329
  260
  201
  151
  111
  80
  55
  38
  25
  16
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Fibria Celulose S.A. (Fibria) is a forestry company, which is engaged in the production of eucalyptus pulp. The Company is engaged in the production and sale of short fiber pulp from its pulp production facilities located in the cities of Aracruz (State of Espirito Santo), Tres Lagoas (State of Mato Grosso do Sul), Jacarei (State of Sao Paulo) and Eunapolis (State of Bahia). The Company's activities are focused on the growth of renewable and forests, and the manufacture and sale of bleached eucalyptus kraft pulp. The Company's annual production capacity is approximately 5.3 million tons of pulp. Fibria has over 969,000 hectares of forests, with approximately 568,000 hectares of planted forests, over 338,000 hectares of environmental preservation and conservation areas, and approximately 63,000 hectares destined for other uses. The pulp produced by Fibria is exported to approximately 40 countries. The pulp produced for export is delivered to customers by sea and through various ports.

FINANCIAL RATIOS  of  Fibria Celulose ADR (FBR)

Valuation Ratios
P/E Ratio 19.9
Price to Sales 3.4
Price to Book 2.4
Price to Tangible Book
Price to Cash Flow 8.4
Price to Free Cash Flow -15.2
Growth Rates
Sales Growth Rate -4.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 158.4%
Cap. Spend. - 3 Yr. Gr. Rate 38.6%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 109.2%
Total Debt to Equity 115.9%
Interest Coverage 29
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 6%
Ret/ On T. Cap. - 3 Yr. Avg. 2.7%
Return On Equity 12.5%
Return On Equity - 3 Yr. Avg. 5.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 26.1%
Gross Margin - 3 Yr. Avg. 29.8%
EBITDA Margin 53.4%
EBITDA Margin - 3 Yr. Avg. 34.6%
Operating Margin 14.8%
Oper. Margin - 3 Yr. Avg. 24.4%
Pre-Tax Margin 31.6%
Pre-Tax Margin - 3 Yr. Avg. 10.1%
Net Profit Margin 17.2%
Net Profit Margin - 3 Yr. Avg. 7.6%
Effective Tax Rate 45.3%
Eff/ Tax Rate - 3 Yr. Avg. -87.2%
Payout Ratio 18.5%

FBR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FBR stock intrinsic value calculation we used $3040 million for the last fiscal year's total revenue generated by Fibria Celulose ADR. The default revenue input number comes from 2016 income statement of Fibria Celulose 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 FBR stock valuation model: a) initial revenue growth rate of 23.7% 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 6.2%, whose default value for FBR is calculated based on our internal credit rating of Fibria Celulose 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 Fibria Celulose 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 FBR stock the variable cost ratio is equal to 65%.

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 FBR 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 Fibria Celulose ADR.

Corporate tax rate of 27% is the nominal tax rate for Fibria Celulose 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 FBR 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 FBR are equal to 164.5%.

Life of production assets of 10.1 years is the average useful life of capital assets used in Fibria Celulose 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 FBR is equal to -2.9%. 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 - $4348 million for Fibria Celulose 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 544.218 million for Fibria Celulose 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 Fibria Celulose ADR at the current share price and the inputted number of shares is $10.2 billion.

RELATED COMPANIES Price Int.Val. Rating
MERC Mercer Interna 13.70 98.61  str.buy
RFP Resolute Fores 8.30 4.55  str.sell

COMPANY NEWS

▶ Pace of 10-Year Yield Gain Cant Keep Up, Says Hogan   [Feb-08-18 08:39AM  Bloomberg Video]
▶ Disney 'Discount to the Market' on Taxes, Crockett Says   [Feb-07-18 09:00AM  Bloomberg Video]
▶ Will Disney-Fox Deal Face Regulatory Hurdles?   [Dec-19-17 11:34AM  Bloomberg Video]
▶ Stocks Showing Market Leadership: Fibria Celulose Earns 92 RS Rating   [Dec-13-17 03:00AM  Investor's Business Daily]
▶ Fibria Celulose Earns Relative Strength Rating Upgrade   [Dec-07-17 03:00AM  Investor's Business Daily]
▶ Crockett, Piecyk on the Mega-Cap Media Landscape   [Nov-20-17 10:19AM  Bloomberg Video]
▶ Disney's Challenge to Building a Future Without Netflix   [Aug-09-17 12:19PM  Bloomberg Video]
▶ ETFs with exposure to Fibria Celulose SA : August 8, 2017   [Aug-08-17 04:26PM  Capital Cube]
▶ "Fast Money' final trades: OLN, TGT & more   [May-18-17 05:59PM  CNBC Videos]
▶ ETFs with exposure to Fibria Celulose SA : May 3, 2017   [May-03-17 03:56PM  Capital Cube]
▶ Fibria Celulose posts 1Q profit   [08:14AM  Associated Press]
▶ ETFs with exposure to Fibria Celulose SA : April 5, 2017   [Apr-05-17 04:45PM  Capital Cube]
▶ B. Riley Expands in IPO Market With FBR   [Feb-21-17 12:55PM  The Deal Pipeline]
▶ Do Hedge Funds Love Bright Horizons Family Solutions Inc (BFAM)?   [Dec-09-16 04:34AM  at Insider Monkey]
▶ What Hedge Funds Think about RSP Permian Inc (RSPP)?   [Dec-07-16 11:44AM  at Insider Monkey]
▶ Downtrending Stocks Still Presenting Short Trades   [Oct-12-16 01:00PM  at Investopedia]
Financial statements of FBR
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.