Intrinsic value of Handy&Harman - HNH

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$27.45

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$27.45

 
Intrinsic value

$454.91

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence* premium content

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

We calculate the intrinsic value of HNH 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 0.3

 

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, %
  27.58
  43.90
  40.01
  36.51
  33.36
  30.52
  27.97
  25.67
  23.61
  21.75
  20.07
  18.56
  17.21
  15.99
  14.89
  13.90
  13.01
  12.21
  11.49
  10.84
  10.25
  9.73
  9.26
  8.83
  8.45
  8.10
  7.79
  7.51
  7.26
  7.04
  6.83
Revenue, $m
  828
  1,191
  1,668
  2,277
  3,037
  3,964
  5,073
  6,375
  7,880
  9,593
  11,518
  13,657
  16,007
  18,566
  21,330
  24,294
  27,455
  30,806
  34,345
  38,068
  41,971
  46,055
  50,318
  54,762
  59,388
  64,200
  69,203
  74,402
  79,805
  85,420
  91,256
Variable operating expenses, $m
 
  1,101
  1,535
  2,088
  2,779
  3,621
  4,629
  5,813
  7,181
  8,738
  10,489
  12,414
  14,550
  16,876
  19,389
  22,084
  24,957
  28,004
  31,220
  34,604
  38,153
  41,865
  45,740
  49,779
  53,984
  58,359
  62,906
  67,633
  72,544
  77,648
  82,954
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
  813
  1,101
  1,535
  2,088
  2,779
  3,621
  4,629
  5,813
  7,181
  8,738
  10,489
  12,414
  14,550
  16,876
  19,389
  22,084
  24,957
  28,004
  31,220
  34,604
  38,153
  41,865
  45,740
  49,779
  53,984
  58,359
  62,906
  67,633
  72,544
  77,648
  82,954
Operating income, $m
  15
  90
  134
  189
  258
  342
  443
  562
  699
  855
  1,030
  1,242
  1,456
  1,689
  1,941
  2,210
  2,498
  2,803
  3,125
  3,463
  3,819
  4,190
  4,578
  4,982
  5,403
  5,841
  6,296
  6,769
  7,261
  7,772
  8,303
EBITDA, $m
  55
  142
  199
  272
  362
  473
  605
  761
  940
  1,145
  1,375
  1,630
  1,910
  2,216
  2,546
  2,900
  3,277
  3,677
  4,099
  4,543
  5,009
  5,497
  6,005
  6,536
  7,088
  7,662
  8,259
  8,880
  9,525
  10,195
  10,891
Interest expense (income), $m
  6
  9
  20
  33
  50
  72
  98
  129
  166
  208
  256
  310
  370
  437
  509
  586
  670
  759
  853
  953
  1,057
  1,167
  1,282
  1,402
  1,527
  1,657
  1,793
  1,933
  2,080
  2,232
  2,390
Earnings before tax, $m
  8
  81
  114
  156
  208
  271
  346
  433
  533
  647
  774
  932
  1,086
  1,253
  1,432
  1,624
  1,828
  2,044
  2,272
  2,511
  2,761
  3,023
  3,296
  3,580
  3,876
  4,184
  4,504
  4,836
  5,181
  5,540
  5,913
Tax expense, $m
  14
  22
  31
  42
  56
  73
  93
  117
  144
  175
  209
  252
  293
  338
  387
  438
  494
  552
  613
  678
  746
  816
  890
  967
  1,047
  1,130
  1,216
  1,306
  1,399
  1,496
  1,596
Net income, $m
  -11
  59
  83
  114
  152
  198
  252
  316
  389
  472
  565
  681
  793
  914
  1,045
  1,186
  1,335
  1,492
  1,658
  1,833
  2,016
  2,207
  2,406
  2,614
  2,830
  3,054
  3,288
  3,530
  3,782
  4,044
  4,316

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  29
  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
  837
  1,162
  1,628
  2,222
  2,963
  3,867
  4,949
  6,219
  7,687
  9,359
  11,237
  13,324
  15,616
  18,113
  20,809
  23,702
  26,785
  30,055
  33,507
  37,139
  40,948
  44,932
  49,091
  53,426
  57,939
  62,634
  67,515
  72,587
  77,859
  83,337
  89,030
Adjusted assets (=assets-cash), $m
  808
  1,162
  1,628
  2,222
  2,963
  3,867
  4,949
  6,219
  7,687
  9,359
  11,237
  13,324
  15,616
  18,113
  20,809
  23,702
  26,785
  30,055
  33,507
  37,139
  40,948
  44,932
  49,091
  53,426
  57,939
  62,634
  67,515
  72,587
  77,859
  83,337
  89,030
Revenue / Adjusted assets
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
  1.025
Average production assets, $m
  217
  311
  435
  594
  793
  1,035
  1,324
  1,664
  2,057
  2,504
  3,006
  3,564
  4,178
  4,846
  5,567
  6,341
  7,166
  8,040
  8,964
  9,936
  10,955
  12,020
  13,133
  14,293
  15,500
  16,756
  18,062
  19,419
  20,829
  22,295
  23,818
Working capital, $m
  137
  161
  225
  307
  410
  535
  685
  861
  1,064
  1,295
  1,555
  1,844
  2,161
  2,506
  2,879
  3,280
  3,706
  4,159
  4,637
  5,139
  5,666
  6,217
  6,793
  7,393
  8,017
  8,667
  9,342
  10,044
  10,774
  11,532
  12,320
Total debt, $m
  275
  563
  946
  1,436
  2,046
  2,792
  3,683
  4,730
  5,939
  7,317
  8,865
  10,584
  12,473
  14,530
  16,752
  19,135
  21,676
  24,370
  27,215
  30,208
  33,346
  36,629
  40,056
  43,628
  47,347
  51,215
  55,237
  59,417
  63,761
  68,274
  72,966
Total liabilities, $m
  670
  958
  1,341
  1,831
  2,441
  3,187
  4,078
  5,125
  6,334
  7,712
  9,260
  10,979
  12,868
  14,925
  17,147
  19,530
  22,071
  24,765
  27,610
  30,603
  33,741
  37,024
  40,451
  44,023
  47,742
  51,610
  55,632
  59,812
  64,156
  68,669
  73,361
Total equity, $m
  167
  205
  286
  391
  521
  681
  871
  1,095
  1,353
  1,647
  1,978
  2,345
  2,748
  3,188
  3,662
  4,171
  4,714
  5,290
  5,897
  6,537
  7,207
  7,908
  8,640
  9,403
  10,197
  11,024
  11,883
  12,775
  13,703
  14,667
  15,669
Total liabilities and equity, $m
  837
  1,163
  1,627
  2,222
  2,962
  3,868
  4,949
  6,220
  7,687
  9,359
  11,238
  13,324
  15,616
  18,113
  20,809
  23,701
  26,785
  30,055
  33,507
  37,140
  40,948
  44,932
  49,091
  53,426
  57,939
  62,634
  67,515
  72,587
  77,859
  83,336
  89,030
Debt-to-equity ratio
  1.647
  2.750
  3.300
  3.670
  3.920
  4.100
  4.230
  4.320
  4.390
  4.440
  4.480
  4.510
  4.540
  4.560
  4.570
  4.590
  4.600
  4.610
  4.610
  4.620
  4.630
  4.630
  4.640
  4.640
  4.640
  4.650
  4.650
  4.650
  4.650
  4.650
  4.660
Adjusted equity ratio
  0.172
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -11
  59
  83
  114
  152
  198
  252
  316
  389
  472
  565
  681
  793
  914
  1,045
  1,186
  1,335
  1,492
  1,658
  1,833
  2,016
  2,207
  2,406
  2,614
  2,830
  3,054
  3,288
  3,530
  3,782
  4,044
  4,316
Depreciation, amort., depletion, $m
  40
  52
  66
  83
  104
  131
  162
  199
  242
  290
  345
  387
  454
  527
  605
  689
  779
  874
  974
  1,080
  1,191
  1,307
  1,428
  1,554
  1,685
  1,821
  1,963
  2,111
  2,264
  2,423
  2,589
Funds from operations, $m
  87
  111
  149
  197
  256
  328
  414
  515
  631
  762
  910
  1,068
  1,247
  1,441
  1,650
  1,875
  2,113
  2,366
  2,633
  2,913
  3,206
  3,513
  3,834
  4,167
  4,514
  4,875
  5,251
  5,641
  6,046
  6,467
  6,905
Change in working capital, $m
  4
  49
  64
  82
  103
  125
  150
  176
  203
  231
  260
  289
  317
  345
  373
  400
  427
  452
  478
  503
  527
  551
  576
  600
  625
  650
  675
  702
  729
  758
  788
Cash from operations, $m
  83
  122
  84
  114
  154
  203
  265
  339
  428
  531
  650
  779
  930
  1,096
  1,277
  1,474
  1,687
  1,914
  2,155
  2,410
  2,679
  2,962
  3,258
  3,567
  3,890
  4,226
  4,575
  4,939
  5,317
  5,709
  6,117
Maintenance CAPEX, $m
  0
  -24
  -34
  -47
  -65
  -86
  -112
  -144
  -181
  -224
  -272
  -327
  -387
  -454
  -527
  -605
  -689
  -779
  -874
  -974
  -1,080
  -1,191
  -1,307
  -1,428
  -1,554
  -1,685
  -1,821
  -1,963
  -2,111
  -2,264
  -2,423
New CAPEX, $m
  -26
  -94
  -124
  -159
  -198
  -242
  -289
  -340
  -393
  -447
  -503
  -558
  -613
  -668
  -721
  -774
  -825
  -875
  -924
  -972
  -1,019
  -1,066
  -1,113
  -1,160
  -1,207
  -1,256
  -1,306
  -1,357
  -1,410
  -1,466
  -1,523
Cash from investing activities, $m
  -242
  -118
  -158
  -206
  -263
  -328
  -401
  -484
  -574
  -671
  -775
  -885
  -1,000
  -1,122
  -1,248
  -1,379
  -1,514
  -1,654
  -1,798
  -1,946
  -2,099
  -2,257
  -2,420
  -2,588
  -2,761
  -2,941
  -3,127
  -3,320
  -3,521
  -3,730
  -3,946
Free cash flow, $m
  -159
  4
  -74
  -92
  -109
  -125
  -137
  -145
  -146
  -140
  -125
  -106
  -71
  -26
  29
  96
  173
  260
  357
  464
  581
  706
  839
  980
  1,129
  1,285
  1,448
  1,619
  1,796
  1,980
  2,171
Issuance/(repayment) of debt, $m
  166
  292
  383
  490
  611
  745
  891
  1,047
  1,210
  1,377
  1,548
  1,719
  1,889
  2,057
  2,222
  2,383
  2,541
  2,694
  2,845
  2,993
  3,138
  3,283
  3,427
  3,572
  3,719
  3,868
  4,022
  4,180
  4,344
  4,514
  4,692
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  
  165
  292
  383
  490
  611
  745
  891
  1,047
  1,210
  1,377
  1,548
  1,719
  1,889
  2,057
  2,222
  2,383
  2,541
  2,694
  2,845
  2,993
  3,138
  3,283
  3,427
  3,572
  3,719
  3,868
  4,022
  4,180
  4,344
  4,514
  4,692
Total cash flow (excl. dividends), $m
  5
  296
  309
  398
  501
  620
  754
  902
  1,064
  1,238
  1,423
  1,613
  1,818
  2,031
  2,251
  2,479
  2,713
  2,954
  3,202
  3,457
  3,719
  3,988
  4,266
  4,552
  4,848
  5,154
  5,470
  5,799
  6,139
  6,494
  6,863
Retained Cash Flow (-), $m
  18
  -63
  -82
  -105
  -130
  -159
  -190
  -224
  -258
  -294
  -331
  -367
  -404
  -439
  -475
  -509
  -543
  -576
  -608
  -639
  -670
  -701
  -732
  -763
  -794
  -826
  -859
  -893
  -928
  -964
  -1,002
Prev. year cash balance distribution, $m
 
  25
  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
 
  259
  227
  293
  371
  461
  564
  679
  806
  944
  1,092
  1,246
  1,414
  1,591
  1,777
  1,970
  2,171
  2,379
  2,595
  2,818
  3,049
  3,287
  3,534
  3,789
  4,053
  4,327
  4,611
  4,906
  5,212
  5,530
  5,860
Discount rate, %
 
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
 
  241
  195
  231
  266
  298
  326
  347
  361
  366
  363
  351
  332
  308
  279
  247
  214
  181
  149
  120
  95
  73
  54
  40
  28
  19
  13
  8
  5
  3
  2
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

Handy & Harman Ltd. manufactures and sells engineered niche industrial products in the United States and internationally. It operates through Joining Materials, Tubing, Building Materials, Performance Materials, and Kasco Blades and Route Repair Services segments. The Joining Materials segment fabricates precious metals and their alloys into brazing alloys, including gold, silver, palladium, copper, nickel, aluminum, and tin. The Tubing segment provides seamless stainless steel tubing coils for petrochemical infrastructure and shipbuilding markets; small diameter coil tubing to the aerospace, defense, and semiconductor fabrication markets; and welded carbon steel tubing products in coiled and straight lengths for transportation, appliance and heating, and oil and gas industries. The Building Materials segment offers fasteners and fastening systems for the commercial low slope roofing industry; and engineered specialty fasteners for the building products industry. The Performance Materials segment manufactures sheet and mechanically formed glass and aramid materials for specialty applications. The Kasco Blades and Route Repair Services segment provides meat-room blade products, repair services, and resale products for the meat and deli departments of supermarkets, restaurants, and meat and fish processing plants, as well as for distributors of electrical saws and cutting equipment; and wood cutting blade products for the pallet manufacturing, pallet recycler, and portable saw mill industries. The company sells its products and services through direct sales forces, distributors, and manufacturer’s representatives to the construction, electrical, electronics, transportation, utility, medical, oil and gas exploration, aerospace and defense, and food industries. The company was founded in 1852 and is based in White Plains, New York. Handy & Harman Ltd. is a subsidiary of Steel Partners Holdings L.P.

FINANCIAL RATIOS  of  Handy&Harman (HNH)

Valuation Ratios
P/E Ratio -30.5
Price to Sales 0.4
Price to Book 2
Price to Tangible Book
Price to Cash Flow 4
Price to Free Cash Flow 5.9
Growth Rates
Sales Growth Rate 27.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 73.3%
Cap. Spend. - 3 Yr. Gr. Rate 16.7%
Financial Strength
Quick Ratio 7
Current Ratio -0
LT Debt to Equity 162.3%
Total Debt to Equity 164.7%
Interest Coverage 2
Management Effectiveness
Return On Assets -2.1%
Ret/ On Assets - 3 Yr. Avg. 7.3%
Return On Total Capital -3%
Ret/ On T. Cap. - 3 Yr. Avg. 15.2%
Return On Equity -6.3%
Return On Equity - 3 Yr. Avg. 37.2%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 27.5%
Gross Margin - 3 Yr. Avg. 27.5%
EBITDA Margin 6.5%
EBITDA Margin - 3 Yr. Avg. 8.7%
Operating Margin 1.8%
Oper. Margin - 3 Yr. Avg. 5.4%
Pre-Tax Margin 1%
Pre-Tax Margin - 3 Yr. Avg. 4.6%
Net Profit Margin -1.3%
Net Profit Margin - 3 Yr. Avg. 6.4%
Effective Tax Rate 175%
Eff/ Tax Rate - 3 Yr. Avg. 87.1%
Payout Ratio 0%

HNH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HNH stock intrinsic value calculation we used $828 million for the last fiscal year's total revenue generated by Handy&Harman. The default revenue input number comes from 2016 income statement of Handy&Harman. 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 HNH stock valuation model: a) initial revenue growth rate of 43.9% 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 7.5%, whose default value for HNH is calculated based on our internal credit rating of Handy&Harman, 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 Handy&Harman.
    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 HNH stock the variable cost ratio is equal to 93.1%.

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 HNH 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 Handy&Harman.

Corporate tax rate of 27% is the nominal tax rate for Handy&Harman. 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 HNH 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 HNH are equal to 26.1%.

Life of production assets of 9.2 years is the average useful life of capital assets used in Handy&Harman 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 HNH is equal to 13.5%. 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 - $167 million for Handy&Harman - 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 12.129 million for Handy&Harman 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 Handy&Harman at the current share price and the inputted number of shares is $0.3 billion.


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Stock chart of HNH Financial statements of HNH
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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