Intrinsic value of IRSA Propiedades Comerciales ADR - IRCP

Previous Close

$56.40

  Intrinsic Value

$2,850

stock screener

  Rating & Target

str. buy

+999%

Previous close

$56.40

 
Intrinsic value

$2,850

 
Up/down potential

+999%

 
Rating

str. buy

Our model is not good at valuating stocks of financial companies, such as IRCP.

We calculate the intrinsic value of IRCP 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 2017), $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 1.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  29.55
  33.80
  30.92
  28.33
  26.00
  23.90
  22.01
  20.31
  18.77
  17.40
  16.16
  15.04
  14.04
  13.13
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
Revenue, $m
  320
  428
  561
  719
  906
  1,123
  1,370
  1,648
  1,958
  2,298
  2,670
  3,071
  3,502
  3,962
  4,450
  4,966
  5,509
  6,078
  6,674
  7,296
  7,945
  8,621
  9,323
  10,054
  10,813
  11,602
  12,422
  13,274
  14,161
  15,082
  16,041
Variable operating expenses, $m
 
  -1,684
  -2,205
  -2,830
  -3,566
  -4,418
  -5,390
  -6,484
  -7,701
  -9,041
  -10,502
  -12,082
  -13,778
  -15,587
  -17,508
  -19,537
  -21,672
  -23,912
  -26,256
  -28,704
  -31,256
  -33,913
  -36,678
  -39,552
  -42,539
  -45,643
  -48,869
  -52,222
  -55,708
  -59,333
  -63,104
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
  -40
  -1,684
  -2,205
  -2,830
  -3,566
  -4,418
  -5,390
  -6,484
  -7,701
  -9,041
  -10,502
  -12,082
  -13,778
  -15,587
  -17,508
  -19,537
  -21,672
  -23,912
  -26,256
  -28,704
  -31,256
  -33,913
  -36,678
  -39,552
  -42,539
  -45,643
  -48,869
  -52,222
  -55,708
  -59,333
  -63,104
Operating income, $m
  360
  2,113
  2,766
  3,549
  4,472
  5,540
  6,760
  8,132
  9,659
  11,339
  13,172
  15,153
  17,280
  19,550
  21,958
  24,503
  27,181
  29,991
  32,931
  36,001
  39,201
  42,534
  46,001
  49,606
  53,352
  57,245
  61,291
  65,496
  69,868
  74,415
  79,145
EBITDA, $m
  362
  2,115
  2,769
  3,554
  4,477
  5,547
  6,768
  8,142
  9,671
  11,353
  13,188
  15,171
  17,301
  19,573
  21,985
  24,533
  27,214
  30,027
  32,971
  36,044
  39,249
  42,586
  46,057
  49,666
  53,417
  57,315
  61,366
  65,576
  69,953
  74,505
  79,241
Interest expense (income), $m
  35
  34
  74
  122
  180
  248
  327
  417
  518
  630
  754
  890
  1,036
  1,193
  1,360
  1,538
  1,726
  1,923
  2,130
  2,347
  2,574
  2,810
  3,056
  3,311
  3,577
  3,854
  4,141
  4,440
  4,750
  5,072
  5,408
Earnings before tax, $m
  319
  2,078
  2,692
  3,427
  4,292
  5,293
  6,433
  7,716
  9,141
  10,709
  12,417
  14,263
  16,244
  18,357
  20,598
  22,965
  25,456
  28,068
  30,800
  33,653
  36,628
  39,724
  42,945
  46,294
  49,775
  53,392
  57,150
  61,057
  65,118
  69,342
  73,737
Tax expense, $m
  103
  561
  727
  925
  1,159
  1,429
  1,737
  2,083
  2,468
  2,891
  3,353
  3,851
  4,386
  4,956
  5,562
  6,201
  6,873
  7,578
  8,316
  9,086
  9,889
  10,726
  11,595
  12,499
  13,439
  14,416
  15,431
  16,485
  17,582
  18,722
  19,909
Net income, $m
  209
  1,517
  1,965
  2,502
  3,133
  3,864
  4,696
  5,632
  6,673
  7,818
  9,065
  10,412
  11,858
  13,401
  15,037
  16,765
  18,583
  20,489
  22,484
  24,567
  26,738
  28,999
  31,350
  33,795
  36,336
  38,976
  41,720
  44,572
  47,536
  50,620
  53,828

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  191
  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
  2,715
  3,371
  4,414
  5,664
  7,136
  8,842
  10,788
  12,978
  15,415
  18,096
  21,020
  24,182
  27,577
  31,199
  35,043
  39,103
  43,377
  47,861
  52,553
  57,452
  62,560
  67,879
  73,412
  79,164
  85,143
  91,356
  97,813
  104,524
  111,500
  118,756
  126,305
Adjusted assets (=assets-cash), $m
  2,524
  3,371
  4,414
  5,664
  7,136
  8,842
  10,788
  12,978
  15,415
  18,096
  21,020
  24,182
  27,577
  31,199
  35,043
  39,103
  43,377
  47,861
  52,553
  57,452
  62,560
  67,879
  73,412
  79,164
  85,143
  91,356
  97,813
  104,524
  111,500
  118,756
  126,305
Revenue / Adjusted assets
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
Average production assets, $m
  10
  13
  17
  22
  27
  34
  41
  49
  59
  69
  80
  92
  105
  119
  134
  149
  165
  182
  200
  219
  238
  259
  280
  302
  324
  348
  373
  398
  425
  452
  481
Working capital, $m
  174
  -1
  -2
  -2
  -3
  -3
  -4
  -5
  -6
  -7
  -8
  -9
  -11
  -12
  -13
  -15
  -17
  -18
  -20
  -22
  -24
  -26
  -28
  -30
  -32
  -35
  -37
  -40
  -42
  -45
  -48
Total debt, $m
  395
  810
  1,339
  1,974
  2,722
  3,589
  4,577
  5,690
  6,928
  8,290
  9,775
  11,382
  13,106
  14,946
  16,899
  18,962
  21,133
  23,410
  25,794
  28,283
  30,878
  33,579
  36,390
  39,312
  42,350
  45,506
  48,786
  52,195
  55,739
  59,425
  63,260
Total liabilities, $m
  1,298
  1,713
  2,242
  2,877
  3,625
  4,492
  5,480
  6,593
  7,831
  9,193
  10,678
  12,285
  14,009
  15,849
  17,802
  19,865
  22,036
  24,313
  26,697
  29,186
  31,781
  34,482
  37,293
  40,215
  43,253
  46,409
  49,689
  53,098
  56,642
  60,328
  64,163
Total equity, $m
  1,417
  1,659
  2,172
  2,787
  3,511
  4,350
  5,307
  6,385
  7,584
  8,903
  10,342
  11,898
  13,568
  15,350
  17,241
  19,239
  21,342
  23,548
  25,856
  28,267
  30,780
  33,396
  36,118
  38,949
  41,890
  44,947
  48,124
  51,426
  54,858
  58,428
  62,142
Total liabilities and equity, $m
  2,715
  3,372
  4,414
  5,664
  7,136
  8,842
  10,787
  12,978
  15,415
  18,096
  21,020
  24,183
  27,577
  31,199
  35,043
  39,104
  43,378
  47,861
  52,553
  57,453
  62,561
  67,878
  73,411
  79,164
  85,143
  91,356
  97,813
  104,524
  111,500
  118,756
  126,305
Debt-to-equity ratio
  0.279
  0.490
  0.620
  0.710
  0.780
  0.820
  0.860
  0.890
  0.910
  0.930
  0.950
  0.960
  0.970
  0.970
  0.980
  0.990
  0.990
  0.990
  1.000
  1.000
  1.000
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.020
  1.020
  1.020
Adjusted equity ratio
  0.486
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  209
  1,517
  1,965
  2,502
  3,133
  3,864
  4,696
  5,632
  6,673
  7,818
  9,065
  10,412
  11,858
  13,401
  15,037
  16,765
  18,583
  20,489
  22,484
  24,567
  26,738
  28,999
  31,350
  33,795
  36,336
  38,976
  41,720
  44,572
  47,536
  50,620
  53,828
Depreciation, amort., depletion, $m
  2
  3
  3
  4
  5
  7
  8
  10
  12
  14
  16
  18
  21
  24
  27
  30
  33
  36
  40
  44
  48
  52
  56
  60
  65
  70
  75
  80
  85
  90
  96
Funds from operations, $m
  284
  1,520
  1,969
  2,506
  3,139
  3,870
  4,704
  5,642
  6,685
  7,831
  9,081
  10,431
  11,879
  13,424
  15,063
  16,794
  18,616
  20,526
  22,524
  24,611
  26,786
  29,050
  31,406
  33,855
  36,400
  39,046
  41,794
  44,651
  47,621
  50,710
  53,924
Change in working capital, $m
  100
  0
  0
  0
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
Cash from operations, $m
  184
  1,520
  1,969
  2,507
  3,139
  3,871
  4,705
  5,643
  6,686
  7,832
  9,082
  10,432
  11,881
  13,426
  15,065
  16,796
  18,617
  20,528
  22,526
  24,613
  26,788
  29,052
  31,408
  33,857
  36,403
  39,048
  41,797
  44,654
  47,624
  50,713
  53,927
Maintenance CAPEX, $m
  0
  -2
  -3
  -3
  -4
  -5
  -7
  -8
  -10
  -12
  -14
  -16
  -18
  -21
  -24
  -27
  -30
  -33
  -36
  -40
  -44
  -48
  -52
  -56
  -60
  -65
  -70
  -75
  -80
  -85
  -90
New CAPEX, $m
  -4
  -3
  -4
  -5
  -6
  -6
  -7
  -8
  -9
  -10
  -11
  -12
  -13
  -14
  -15
  -15
  -16
  -17
  -18
  -19
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
Cash from investing activities, $m
  -9
  -5
  -7
  -8
  -10
  -11
  -14
  -16
  -19
  -22
  -25
  -28
  -31
  -35
  -39
  -42
  -46
  -50
  -54
  -59
  -63
  -68
  -73
  -78
  -83
  -89
  -95
  -101
  -107
  -113
  -119
Free cash flow, $m
  175
  1,515
  1,962
  2,499
  3,129
  3,859
  4,691
  5,627
  6,667
  7,810
  9,057
  10,404
  11,849
  13,391
  15,026
  16,754
  18,571
  20,477
  22,472
  24,554
  26,724
  28,984
  31,335
  33,779
  36,320
  38,959
  41,702
  44,554
  47,518
  50,601
  53,808
Issuance/(repayment) of debt, $m
  7
  431
  530
  635
  748
  866
  988
  1,113
  1,238
  1,362
  1,485
  1,606
  1,724
  1,840
  1,953
  2,063
  2,171
  2,278
  2,383
  2,489
  2,595
  2,702
  2,811
  2,922
  3,037
  3,156
  3,280
  3,409
  3,544
  3,686
  3,835
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  
  -58
  431
  530
  635
  748
  866
  988
  1,113
  1,238
  1,362
  1,485
  1,606
  1,724
  1,840
  1,953
  2,063
  2,171
  2,278
  2,383
  2,489
  2,595
  2,702
  2,811
  2,922
  3,037
  3,156
  3,280
  3,409
  3,544
  3,686
  3,835
Total cash flow (excl. dividends), $m
  117
  1,945
  2,492
  3,134
  3,877
  4,725
  5,679
  6,739
  7,904
  9,173
  10,542
  12,010
  13,574
  15,231
  16,979
  18,817
  20,742
  22,755
  24,855
  27,043
  29,319
  31,686
  34,146
  36,702
  39,357
  42,116
  44,982
  47,963
  51,062
  54,286
  57,643
Retained Cash Flow (-), $m
  -159
  -417
  -513
  -615
  -724
  -839
  -957
  -1,078
  -1,199
  -1,319
  -1,439
  -1,556
  -1,670
  -1,782
  -1,891
  -1,998
  -2,103
  -2,206
  -2,308
  -2,410
  -2,513
  -2,617
  -2,722
  -2,830
  -2,942
  -3,057
  -3,177
  -3,302
  -3,433
  -3,570
  -3,714
Prev. year cash balance distribution, $m
 
  175
  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
 
  1,704
  1,979
  2,519
  3,153
  3,886
  4,722
  5,662
  6,706
  7,853
  9,104
  10,454
  11,904
  13,449
  15,088
  16,819
  18,640
  20,549
  22,547
  24,632
  26,806
  29,070
  31,424
  33,871
  36,415
  39,059
  41,806
  44,661
  47,629
  50,717
  53,929
Discount rate, %
 
  4.50
  4.73
  4.96
  5.21
  5.47
  5.74
  6.03
  6.33
  6.65
  6.98
  7.33
  7.70
  8.08
  8.49
  8.91
  9.36
  9.82
  10.31
  10.83
  11.37
  11.94
  12.54
  13.16
  13.82
  14.51
  15.24
  16.00
  16.80
  17.64
  18.52
PV of cash for distribution, $m
 
  1,630
  1,805
  2,178
  2,573
  2,978
  3,378
  3,758
  4,103
  4,400
  4,636
  4,801
  4,889
  4,897
  4,824
  4,675
  4,457
  4,178
  3,852
  3,492
  3,110
  2,721
  2,338
  1,970
  1,629
  1,319
  1,046
  812
  616
  456
  329
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

IRSA Propiedades Comerciales S.A. is a commercial real estate company in Argentina. The Company is engaged in the ownership, lease, management, development, operation and purchase of shopping centers and office buildings. It operates through four segments: Shopping Centers, which includes the results from its commercial exploitation and development of shopping centers, derived from the lease and the provision of services related to the lease of retail stores and other spaces in the shopping centers; Offices and Others, which includes the acquisition, development and management of office buildings and other rental properties in Argentina; Sales and Developments, which includes the results of sales of undeveloped parcels of land and/or trading properties, and Financial Operation and Others, which includes the financial activities carried out by the associate Tarshop S.A. The Sales and Developments segment also includes the results of the sales of real property intended for rent.

FINANCIAL RATIOS  of  IRSA Propiedades Comerciales ADR (IRCP)

Valuation Ratios
P/E Ratio 34
Price to Sales 22.2
Price to Book 5
Price to Tangible Book
Price to Cash Flow 38.6
Price to Free Cash Flow 39.5
Growth Rates
Sales Growth Rate 29.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 300%
Cap. Spend. - 3 Yr. Gr. Rate 32%
Financial Strength
Quick Ratio 12
Current Ratio 0
LT Debt to Equity 26.7%
Total Debt to Equity 27.9%
Interest Coverage 10
Management Effectiveness
Return On Assets 9%
Ret/ On Assets - 3 Yr. Avg. 25%
Return On Total Capital 12.1%
Ret/ On T. Cap. - 3 Yr. Avg. 35.8%
Return On Equity 15.6%
Return On Equity - 3 Yr. Avg. 50.7%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 61.9%
Gross Margin - 3 Yr. Avg. 62.2%
EBITDA Margin 111.3%
EBITDA Margin - 3 Yr. Avg. 246.6%
Operating Margin 112.5%
Oper. Margin - 3 Yr. Avg. 251%
Pre-Tax Margin 99.7%
Pre-Tax Margin - 3 Yr. Avg. 237.4%
Net Profit Margin 65.3%
Net Profit Margin - 3 Yr. Avg. 151.4%
Effective Tax Rate 32.3%
Eff/ Tax Rate - 3 Yr. Avg. 33.5%
Payout Ratio 1.4%

IRCP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IRCP stock intrinsic value calculation we used $320 million for the last fiscal year's total revenue generated by IRSA Propiedades Comerciales ADR. The default revenue input number comes from 2017 income statement of IRSA Propiedades Comerciales 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 IRCP stock valuation model: a) initial revenue growth rate of 33.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.5%, whose default value for IRCP is calculated based on our internal credit rating of IRSA Propiedades Comerciales 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 IRSA Propiedades Comerciales 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 IRCP stock the variable cost ratio is equal to -393.4%.

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 IRCP 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 9.1% for IRSA Propiedades Comerciales ADR.

Corporate tax rate of 27% is the nominal tax rate for IRSA Propiedades Comerciales 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 IRCP 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 IRCP are equal to 3%.

Life of production assets of 4.8 years is the average useful life of capital assets used in IRSA Propiedades Comerciales 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 IRCP is equal to -0.3%. 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 - $1417 million for IRSA Propiedades Comerciales 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 31.057 million for IRSA Propiedades Comerciales 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 IRSA Propiedades Comerciales ADR at the current share price and the inputted number of shares is $1.8 billion.

RELATED COMPANIES Price Int.Val. Rating
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CRESY Cresud ADR 20.50 4,360.11  str.buy
Financial statements of IRCP
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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