Intrinsic value of Handy&Harman - HNH

Previous Close

$32.75

  Intrinsic Value

$489.47

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

+197%

Previous close

$32.75

 
Intrinsic value

$489.47

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

+197%

*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 0.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  27.58
  46.00
  41.90
  38.21
  34.89
  31.90
  29.21
  26.79
  24.61
  22.65
  20.88
  19.30
  17.87
  16.58
  15.42
  14.38
  13.44
  12.60
  11.84
  11.15
  10.54
  9.98
  9.49
  9.04
  8.63
  8.27
  7.94
  7.65
  7.38
  7.15
  6.93
Revenue, $m
  828
  1,209
  1,715
  2,371
  3,198
  4,218
  5,450
  6,910
  8,611
  10,561
  12,767
  15,231
  17,952
  20,928
  24,156
  27,629
  31,343
  35,291
  39,469
  43,871
  48,494
  53,336
  58,396
  63,674
  69,171
  74,892
  80,841
  87,024
  93,450
  100,128
  107,068
Variable operating expenses, $m
 
  1,117
  1,578
  2,173
  2,925
  3,853
  4,973
  6,300
  7,846
  9,619
  11,624
  13,845
  16,319
  19,024
  21,958
  25,115
  28,491
  32,080
  35,878
  39,880
  44,082
  48,484
  53,083
  57,881
  62,878
  68,078
  73,486
  79,107
  84,948
  91,018
  97,327
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
  1,117
  1,578
  2,173
  2,925
  3,853
  4,973
  6,300
  7,846
  9,619
  11,624
  13,845
  16,319
  19,024
  21,958
  25,115
  28,491
  32,080
  35,878
  39,880
  44,082
  48,484
  53,083
  57,881
  62,878
  68,078
  73,486
  79,107
  84,948
  91,018
  97,327
Operating income, $m
  15
  92
  138
  198
  273
  366
  478
  611
  765
  943
  1,143
  1,386
  1,633
  1,904
  2,198
  2,514
  2,852
  3,211
  3,591
  3,991
  4,412
  4,853
  5,313
  5,793
  6,293
  6,814
  7,355
  7,918
  8,502
  9,110
  9,741
EBITDA, $m
  55
  142
  201
  278
  374
  494
  638
  809
  1,008
  1,237
  1,495
  1,783
  2,102
  2,450
  2,828
  3,235
  3,670
  4,132
  4,621
  5,136
  5,678
  6,245
  6,837
  7,455
  8,099
  8,768
  9,465
  10,189
  10,941
  11,723
  12,536
Interest expense (income), $m
  6
  9
  20
  34
  53
  76
  105
  140
  181
  228
  283
  345
  415
  491
  575
  666
  764
  868
  979
  1,097
  1,221
  1,351
  1,487
  1,629
  1,778
  1,932
  2,093
  2,261
  2,435
  2,616
  2,803
Earnings before tax, $m
  8
  82
  118
  163
  220
  289
  373
  471
  585
  714
  860
  1,040
  1,219
  1,413
  1,623
  1,848
  2,088
  2,343
  2,612
  2,895
  3,191
  3,502
  3,826
  4,164
  4,515
  4,881
  5,262
  5,657
  6,067
  6,494
  6,938
Tax expense, $m
  14
  22
  32
  44
  59
  78
  101
  127
  158
  193
  232
  281
  329
  381
  438
  499
  564
  633
  705
  782
  862
  946
  1,033
  1,124
  1,219
  1,318
  1,421
  1,527
  1,638
  1,753
  1,873
Net income, $m
  -11
  60
  86
  119
  161
  211
  272
  344
  427
  521
  628
  759
  890
  1,031
  1,185
  1,349
  1,524
  1,710
  1,907
  2,113
  2,330
  2,556
  2,793
  3,040
  3,296
  3,563
  3,841
  4,129
  4,429
  4,741
  5,065

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
  1,179
  1,674
  2,313
  3,120
  4,115
  5,317
  6,742
  8,401
  10,304
  12,456
  14,859
  17,514
  20,418
  23,566
  26,955
  30,578
  34,430
  38,506
  42,801
  47,312
  52,036
  56,972
  62,121
  67,484
  73,065
  78,869
  84,902
  91,171
  97,686
  104,457
Adjusted assets (=assets-cash), $m
  808
  1,179
  1,674
  2,313
  3,120
  4,115
  5,317
  6,742
  8,401
  10,304
  12,456
  14,859
  17,514
  20,418
  23,566
  26,955
  30,578
  34,430
  38,506
  42,801
  47,312
  52,036
  56,972
  62,121
  67,484
  73,065
  78,869
  84,902
  91,171
  97,686
  104,457
Revenue / Adjusted assets
  1.025
  1.025
  1.024
  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
  316
  448
  619
  835
  1,101
  1,423
  1,804
  2,247
  2,757
  3,332
  3,975
  4,685
  5,462
  6,305
  7,211
  8,180
  9,211
  10,301
  11,450
  12,657
  13,921
  15,241
  16,619
  18,054
  19,547
  21,099
  22,713
  24,391
  26,133
  27,945
Working capital, $m
  137
  163
  232
  320
  432
  569
  736
  933
  1,162
  1,426
  1,724
  2,056
  2,423
  2,825
  3,261
  3,730
  4,231
  4,764
  5,328
  5,923
  6,547
  7,200
  7,883
  8,596
  9,338
  10,110
  10,913
  11,748
  12,616
  13,517
  14,454
Total debt, $m
  275
  577
  984
  1,511
  2,176
  2,996
  3,987
  5,160
  6,527
  8,095
  9,869
  11,849
  14,036
  16,429
  19,024
  21,816
  24,802
  27,976
  31,334
  34,873
  38,590
  42,482
  46,550
  50,792
  55,212
  59,811
  64,593
  69,564
  74,730
  80,098
  85,677
Total liabilities, $m
  670
  972
  1,379
  1,906
  2,571
  3,391
  4,382
  5,555
  6,922
  8,490
  10,264
  12,244
  14,431
  16,824
  19,419
  22,211
  25,197
  28,371
  31,729
  35,268
  38,985
  42,877
  46,945
  51,187
  55,607
  60,206
  64,988
  69,959
  75,125
  80,493
  86,072
Total equity, $m
  167
  208
  295
  407
  549
  724
  936
  1,187
  1,479
  1,813
  2,192
  2,615
  3,082
  3,594
  4,148
  4,744
  5,382
  6,060
  6,777
  7,533
  8,327
  9,158
  10,027
  10,933
  11,877
  12,859
  13,881
  14,943
  16,046
  17,193
  18,384
Total liabilities and equity, $m
  837
  1,180
  1,674
  2,313
  3,120
  4,115
  5,318
  6,742
  8,401
  10,303
  12,456
  14,859
  17,513
  20,418
  23,567
  26,955
  30,579
  34,431
  38,506
  42,801
  47,312
  52,035
  56,972
  62,120
  67,484
  73,065
  78,869
  84,902
  91,171
  97,686
  104,456
Debt-to-equity ratio
  1.647
  2.780
  3.340
  3.710
  3.960
  4.140
  4.260
  4.350
  4.410
  4.460
  4.500
  4.530
  4.550
  4.570
  4.590
  4.600
  4.610
  4.620
  4.620
  4.630
  4.630
  4.640
  4.640
  4.650
  4.650
  4.650
  4.650
  4.660
  4.660
  4.660
  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
  60
  86
  119
  161
  211
  272
  344
  427
  521
  628
  759
  890
  1,031
  1,185
  1,349
  1,524
  1,710
  1,907
  2,113
  2,330
  2,556
  2,793
  3,040
  3,296
  3,563
  3,841
  4,129
  4,429
  4,741
  5,065
Depreciation, amort., depletion, $m
  40
  50
  63
  80
  102
  128
  160
  199
  243
  294
  351
  398
  469
  546
  630
  721
  818
  921
  1,030
  1,145
  1,266
  1,392
  1,524
  1,662
  1,805
  1,955
  2,110
  2,271
  2,439
  2,613
  2,794
Funds from operations, $m
  87
  110
  149
  199
  262
  340
  433
  542
  670
  815
  979
  1,157
  1,358
  1,578
  1,815
  2,070
  2,342
  2,631
  2,937
  3,258
  3,595
  3,948
  4,317
  4,701
  5,102
  5,518
  5,951
  6,401
  6,868
  7,354
  7,859
Change in working capital, $m
  4
  51
  68
  88
  112
  138
  166
  197
  230
  263
  298
  333
  367
  402
  436
  469
  501
  533
  564
  594
  624
  654
  683
  712
  742
  772
  803
  835
  868
  901
  937
Cash from operations, $m
  83
  58
  80
  111
  151
  202
  266
  345
  440
  552
  681
  824
  991
  1,176
  1,379
  1,601
  1,841
  2,098
  2,373
  2,664
  2,971
  3,295
  3,634
  3,989
  4,360
  4,746
  5,148
  5,566
  6,001
  6,453
  6,922
Maintenance CAPEX, $m
  0
  -22
  -32
  -45
  -62
  -83
  -110
  -142
  -180
  -225
  -276
  -333
  -398
  -469
  -546
  -630
  -721
  -818
  -921
  -1,030
  -1,145
  -1,266
  -1,392
  -1,524
  -1,662
  -1,805
  -1,955
  -2,110
  -2,271
  -2,439
  -2,613
New CAPEX, $m
  -26
  -99
  -132
  -171
  -216
  -266
  -322
  -381
  -444
  -509
  -576
  -643
  -710
  -777
  -842
  -907
  -969
  -1,031
  -1,090
  -1,149
  -1,207
  -1,264
  -1,321
  -1,377
  -1,435
  -1,493
  -1,553
  -1,614
  -1,677
  -1,743
  -1,811
Cash from investing activities, $m
  -242
  -121
  -164
  -216
  -278
  -349
  -432
  -523
  -624
  -734
  -852
  -976
  -1,108
  -1,246
  -1,388
  -1,537
  -1,690
  -1,849
  -2,011
  -2,179
  -2,352
  -2,530
  -2,713
  -2,901
  -3,097
  -3,298
  -3,508
  -3,724
  -3,948
  -4,182
  -4,424
Free cash flow, $m
  -159
  -62
  -83
  -105
  -127
  -148
  -165
  -178
  -184
  -182
  -170
  -152
  -117
  -70
  -9
  64
  151
  250
  361
  485
  620
  765
  921
  1,087
  1,263
  1,447
  1,640
  1,842
  2,052
  2,271
  2,497
Issuance/(repayment) of debt, $m
  166
  306
  407
  527
  665
  820
  991
  1,174
  1,367
  1,568
  1,773
  1,980
  2,188
  2,393
  2,595
  2,792
  2,986
  3,174
  3,358
  3,539
  3,717
  3,892
  4,067
  4,243
  4,419
  4,599
  4,782
  4,971
  5,166
  5,368
  5,579
Issuance/(repurchase) of shares, $m
  0
  5
  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
Cash from financing (excl. dividends), $m  
  165
  311
  408
  527
  665
  820
  991
  1,174
  1,367
  1,568
  1,773
  1,980
  2,188
  2,393
  2,595
  2,792
  2,986
  3,174
  3,358
  3,539
  3,717
  3,892
  4,067
  4,243
  4,419
  4,599
  4,782
  4,971
  5,166
  5,368
  5,579
Total cash flow (excl. dividends), $m
  5
  249
  325
  422
  538
  672
  825
  996
  1,183
  1,386
  1,603
  1,829
  2,071
  2,323
  2,585
  2,856
  3,136
  3,424
  3,720
  4,024
  4,336
  4,658
  4,989
  5,330
  5,682
  6,046
  6,423
  6,813
  7,218
  7,639
  8,076
Retained Cash Flow (-), $m
  18
  -66
  -87
  -113
  -142
  -175
  -212
  -251
  -292
  -335
  -379
  -423
  -467
  -511
  -554
  -596
  -638
  -678
  -717
  -756
  -794
  -831
  -869
  -906
  -944
  -982
  -1,021
  -1,062
  -1,103
  -1,147
  -1,192
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
 
  208
  238
  309
  396
  497
  614
  745
  891
  1,051
  1,225
  1,406
  1,603
  1,812
  2,031
  2,260
  2,498
  2,746
  3,002
  3,268
  3,542
  3,826
  4,120
  4,424
  4,738
  5,064
  5,401
  5,751
  6,115
  6,492
  6,885
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
 
  194
  205
  244
  284
  321
  355
  381
  399
  408
  407
  396
  377
  351
  319
  283
  246
  209
  173
  140
  110
  85
  63
  46
  33
  23
  15
  10
  6
  4
  2
Current shareholders' claim on cash, %
  100
  98.4
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2
  98.2

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 manufacturerÂ’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 -36.4
Price to Sales 0.5
Price to Book 2.4
Price to Tangible Book
Price to Cash Flow 4.8
Price to Free Cash Flow 7
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 46% 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 10 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 12.215 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 $0.4 billion.

RELATED COMPANIES Price Int.Val. Rating
SPLP Steel Partners 18.50 140.87  str.buy
SCX L.S. Starrett 8.25 3.17  str.sell

COMPANY NEWS

▶ ETFs with exposure to Handy & Harman Ltd. : May 8, 2017   [May-08-17 04:41PM  Capital Cube]
▶ Handy & Harman posts 1Q profit   [May-02-17 07:09PM  Associated Press]
▶ Handy & Harman reports 4Q loss   [06:23PM  Associated Press]
▶ Handy & Harman Ltd. Acquires ElectroMagnetic Enterprise   [Oct-03-16 09:00AM  Business Wire]
▶ [$$] Bruce Geller Finds Beauty In Microcap Stocks   [Jun-25-16 12:01AM  at Barrons.com]
▶ What You Need to Know About These Hot Stocks   [Apr-07-16 12:53PM  at Insider Monkey]
▶ [$$] Handy & Harman to Buy SL Industries   [09:06AM  at The Wall Street Journal]
▶ SL Industries Spikes On Buyout Offer   [Feb-09-16 01:50PM  Benzinga]
▶ Is Nanometrics Incorporated (NANO) A Good Stock To Buy?   [Nov-27  09:59AM  at Insider Monkey]
Stock chart of HNH Financial statements of HNH Annual reports 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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2017. All rigths reserved.