Intrinsic value of IRSA-Inversiones y Representaciones GDR - IRS

Previous Close

$24.80

  Intrinsic Value

$66.45

stock screener

  Rating & Target

str. buy

+168%

  Value-price divergence*

-134%

Previous close

$24.80

 
Intrinsic value

$66.45

 
Up/down potential

+168%

 
Rating

str. buy

 
Value-price divergence*

-134%

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

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

We calculate the intrinsic value of IRS 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 1.5

 

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, %
  859.17
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
  6.20
  6.08
  5.97
  5.88
  5.79
  5.71
  5.64
  5.57
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.27
  5.25
  5.22
  5.20
  5.18
  5.16
  5.15
Revenue, $m
  2,091
  2,260
  2,436
  2,619
  2,810
  3,007
  3,213
  3,426
  3,648
  3,879
  4,120
  4,371
  4,632
  4,904
  5,188
  5,484
  5,793
  6,116
  6,453
  6,806
  7,175
  7,560
  7,964
  8,387
  8,829
  9,292
  9,778
  10,286
  10,819
  11,377
  11,963
Variable operating expenses, $m
 
  591
  636
  683
  731
  782
  834
  889
  945
  1,004
  1,066
  1,115
  1,182
  1,251
  1,324
  1,399
  1,478
  1,561
  1,647
  1,737
  1,831
  1,930
  2,033
  2,140
  2,253
  2,371
  2,495
  2,625
  2,761
  2,904
  3,053
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
  1,868
  591
  636
  683
  731
  782
  834
  889
  945
  1,004
  1,066
  1,115
  1,182
  1,251
  1,324
  1,399
  1,478
  1,561
  1,647
  1,737
  1,831
  1,930
  2,033
  2,140
  2,253
  2,371
  2,495
  2,625
  2,761
  2,904
  3,053
Operating income, $m
  223
  1,669
  1,800
  1,937
  2,078
  2,226
  2,379
  2,538
  2,703
  2,875
  3,054
  3,255
  3,450
  3,652
  3,864
  4,084
  4,314
  4,555
  4,806
  5,069
  5,344
  5,631
  5,932
  6,246
  6,576
  6,921
  7,282
  7,661
  8,058
  8,474
  8,910
EBITDA, $m
  395
  1,864
  2,010
  2,161
  2,317
  2,480
  2,650
  2,826
  3,009
  3,200
  3,398
  3,605
  3,820
  4,045
  4,279
  4,523
  4,778
  5,044
  5,323
  5,613
  5,918
  6,236
  6,569
  6,917
  7,282
  7,664
  8,064
  8,484
  8,923
  9,384
  9,867
Interest expense (income), $m
  242
  371
  352
  393
  437
  482
  529
  577
  628
  681
  735
  792
  852
  914
  978
  1,046
  1,116
  1,189
  1,266
  1,346
  1,429
  1,517
  1,608
  1,704
  1,804
  1,909
  2,018
  2,134
  2,254
  2,380
  2,513
Earnings before tax, $m
  -110
  1,298
  1,449
  1,543
  1,642
  1,744
  1,850
  1,960
  2,075
  2,195
  2,319
  2,463
  2,598
  2,739
  2,885
  3,039
  3,199
  3,366
  3,541
  3,723
  3,915
  4,114
  4,324
  4,543
  4,772
  5,012
  5,264
  5,527
  5,804
  6,093
  6,397
Tax expense, $m
  10
  350
  391
  417
  443
  471
  499
  529
  560
  593
  626
  665
  701
  739
  779
  820
  864
  909
  956
  1,005
  1,057
  1,111
  1,167
  1,227
  1,288
  1,353
  1,421
  1,492
  1,567
  1,645
  1,727
Net income, $m
  -80
  947
  1,058
  1,127
  1,198
  1,273
  1,350
  1,431
  1,515
  1,602
  1,693
  1,798
  1,896
  1,999
  2,106
  2,218
  2,335
  2,457
  2,585
  2,718
  2,858
  3,004
  3,156
  3,316
  3,484
  3,659
  3,843
  4,035
  4,237
  4,448
  4,670

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,586
  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
  10,176
  9,302
  10,027
  10,780
  11,562
  12,376
  13,221
  14,100
  15,014
  15,965
  16,955
  17,986
  19,060
  20,180
  21,348
  22,567
  23,839
  25,168
  26,556
  28,008
  29,526
  31,113
  32,774
  34,513
  36,333
  38,240
  40,237
  42,330
  44,522
  46,821
  49,230
Adjusted assets (=assets-cash), $m
  8,590
  9,302
  10,027
  10,780
  11,562
  12,376
  13,221
  14,100
  15,014
  15,965
  16,955
  17,986
  19,060
  20,180
  21,348
  22,567
  23,839
  25,168
  26,556
  28,008
  29,526
  31,113
  32,774
  34,513
  36,333
  38,240
  40,237
  42,330
  44,522
  46,821
  49,230
Revenue / Adjusted assets
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
  0.243
Average production assets, $m
  2,795
  3,020
  3,255
  3,500
  3,754
  4,018
  4,292
  4,577
  4,874
  5,183
  5,504
  5,839
  6,188
  6,551
  6,931
  7,326
  7,739
  8,171
  8,621
  9,093
  9,585
  10,101
  10,640
  11,205
  11,796
  12,415
  13,063
  13,742
  14,454
  15,200
  15,982
Working capital, $m
  -53
  -233
  -251
  -270
  -289
  -310
  -331
  -353
  -376
  -400
  -424
  -450
  -477
  -505
  -534
  -565
  -597
  -630
  -665
  -701
  -739
  -779
  -820
  -864
  -909
  -957
  -1,007
  -1,059
  -1,114
  -1,172
  -1,232
Total debt, $m
  7,228
  5,495
  6,147
  6,825
  7,529
  8,261
  9,022
  9,813
  10,635
  11,491
  12,382
  13,310
  14,277
  15,285
  16,336
  17,433
  18,578
  19,774
  21,024
  22,330
  23,696
  25,125
  26,620
  28,185
  29,823
  31,539
  33,336
  35,220
  37,193
  39,262
  41,430
Total liabilities, $m
  10,105
  8,372
  9,024
  9,702
  10,406
  11,138
  11,899
  12,690
  13,512
  14,368
  15,259
  16,187
  17,154
  18,162
  19,213
  20,310
  21,455
  22,651
  23,901
  25,207
  26,573
  28,002
  29,497
  31,062
  32,700
  34,416
  36,213
  38,097
  40,070
  42,139
  44,307
Total equity, $m
  71
  930
  1,003
  1,078
  1,156
  1,238
  1,322
  1,410
  1,501
  1,596
  1,695
  1,799
  1,906
  2,018
  2,135
  2,257
  2,384
  2,517
  2,656
  2,801
  2,953
  3,111
  3,277
  3,451
  3,633
  3,824
  4,024
  4,233
  4,452
  4,682
  4,923
Total liabilities and equity, $m
  10,176
  9,302
  10,027
  10,780
  11,562
  12,376
  13,221
  14,100
  15,013
  15,964
  16,954
  17,986
  19,060
  20,180
  21,348
  22,567
  23,839
  25,168
  26,557
  28,008
  29,526
  31,113
  32,774
  34,513
  36,333
  38,240
  40,237
  42,330
  44,522
  46,821
  49,230
Debt-to-equity ratio
  101.803
  5.910
  6.130
  6.330
  6.510
  6.680
  6.820
  6.960
  7.080
  7.200
  7.300
  7.400
  7.490
  7.570
  7.650
  7.730
  7.790
  7.860
  7.920
  7.970
  8.030
  8.080
  8.120
  8.170
  8.210
  8.250
  8.280
  8.320
  8.350
  8.390
  8.420
Adjusted equity ratio
  -0.167
  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
  -80
  947
  1,058
  1,127
  1,198
  1,273
  1,350
  1,431
  1,515
  1,602
  1,693
  1,798
  1,896
  1,999
  2,106
  2,218
  2,335
  2,457
  2,585
  2,718
  2,858
  3,004
  3,156
  3,316
  3,484
  3,659
  3,843
  4,035
  4,237
  4,448
  4,670
Depreciation, amort., depletion, $m
  172
  195
  209
  224
  239
  255
  271
  288
  306
  325
  344
  350
  371
  392
  415
  439
  463
  489
  516
  544
  574
  605
  637
  671
  706
  743
  782
  823
  866
  910
  957
Funds from operations, $m
  198
  1,142
  1,267
  1,350
  1,437
  1,528
  1,622
  1,719
  1,821
  1,927
  2,037
  2,147
  2,267
  2,391
  2,521
  2,657
  2,799
  2,946
  3,101
  3,263
  3,432
  3,608
  3,793
  3,987
  4,190
  4,402
  4,625
  4,858
  5,102
  5,358
  5,627
Change in working capital, $m
  -67
  -17
  -18
  -19
  -20
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
  -31
  -32
  -33
  -35
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -50
  -52
  -55
  -58
  -60
Cash from operations, $m
  265
  1,160
  1,285
  1,369
  1,457
  1,548
  1,643
  1,741
  1,844
  1,950
  2,061
  2,173
  2,294
  2,419
  2,551
  2,687
  2,830
  2,980
  3,136
  3,299
  3,470
  3,648
  3,835
  4,031
  4,235
  4,450
  4,675
  4,910
  5,157
  5,416
  5,687
Maintenance CAPEX, $m
  0
  -167
  -181
  -195
  -210
  -225
  -241
  -257
  -274
  -292
  -310
  -330
  -350
  -371
  -392
  -415
  -439
  -463
  -489
  -516
  -544
  -574
  -605
  -637
  -671
  -706
  -743
  -782
  -823
  -866
  -910
New CAPEX, $m
  -133
  -225
  -235
  -244
  -254
  -264
  -274
  -285
  -297
  -309
  -321
  -335
  -349
  -364
  -379
  -396
  -413
  -431
  -451
  -471
  -493
  -515
  -539
  -564
  -591
  -619
  -648
  -679
  -712
  -746
  -782
Cash from investing activities, $m
  525
  -392
  -416
  -439
  -464
  -489
  -515
  -542
  -571
  -601
  -631
  -665
  -699
  -735
  -771
  -811
  -852
  -894
  -940
  -987
  -1,037
  -1,089
  -1,144
  -1,201
  -1,262
  -1,325
  -1,391
  -1,461
  -1,535
  -1,612
  -1,692
Free cash flow, $m
  790
  767
  869
  930
  993
  1,059
  1,128
  1,199
  1,273
  1,350
  1,430
  1,509
  1,595
  1,685
  1,779
  1,877
  1,979
  2,085
  2,196
  2,311
  2,432
  2,559
  2,691
  2,829
  2,973
  3,125
  3,283
  3,449
  3,622
  3,804
  3,995
Issuance/(repayment) of debt, $m
  -9
  -309
  652
  678
  704
  732
  761
  791
  823
  856
  891
  928
  967
  1,008
  1,051
  1,097
  1,145
  1,196
  1,250
  1,306
  1,366
  1,429
  1,495
  1,565
  1,638
  1,716
  1,797
  1,883
  1,974
  2,069
  2,168
Issuance/(repurchase) of shares, $m
  -8
  74
  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  
  -247
  -235
  652
  678
  704
  732
  761
  791
  823
  856
  891
  928
  967
  1,008
  1,051
  1,097
  1,145
  1,196
  1,250
  1,306
  1,366
  1,429
  1,495
  1,565
  1,638
  1,716
  1,797
  1,883
  1,974
  2,069
  2,168
Total cash flow (excl. dividends), $m
  870
  532
  1,521
  1,608
  1,698
  1,791
  1,889
  1,990
  2,096
  2,206
  2,321
  2,437
  2,562
  2,693
  2,830
  2,974
  3,124
  3,281
  3,445
  3,618
  3,798
  3,988
  4,186
  4,394
  4,612
  4,841
  5,080
  5,332
  5,596
  5,873
  6,163
Retained Cash Flow (-), $m
  87
  -1,021
  -72
  -75
  -78
  -81
  -85
  -88
  -91
  -95
  -99
  -103
  -107
  -112
  -117
  -122
  -127
  -133
  -139
  -145
  -152
  -159
  -166
  -174
  -182
  -191
  -200
  -209
  -219
  -230
  -241
Prev. year cash balance distribution, $m
 
  162
  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
 
  -327
  1,448
  1,532
  1,619
  1,710
  1,804
  1,902
  2,004
  2,111
  2,222
  2,334
  2,455
  2,581
  2,713
  2,852
  2,997
  3,148
  3,307
  3,473
  3,647
  3,829
  4,020
  4,220
  4,430
  4,650
  4,881
  5,123
  5,377
  5,643
  5,922
Discount rate, %
 
  12.20
  12.81
  13.45
  14.12
  14.83
  15.57
  16.35
  17.17
  18.02
  18.93
  19.87
  20.87
  21.91
  23.00
  24.16
  25.36
  26.63
  27.96
  29.36
  30.83
  32.37
  33.99
  35.69
  37.47
  39.35
  41.31
  43.38
  45.55
  47.83
  50.22
PV of cash for distribution, $m
 
  -292
  1,138
  1,049
  955
  856
  757
  659
  564
  475
  393
  318
  253
  196
  149
  111
  81
  57
  39
  26
  17
  11
  6
  4
  2
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

IRSA Inversiones y Representaciones Sociedad Anonima is a holding company. The Company invests on its own behalf and through investee companies in companies operating in various sectors of the Israeli and global economy. The Company's segments are Cellcom, which includes cellular telephone services, content and added value services, other services and revenues from the sale of end user equipment in the cellular field; Property and Buildings and projects in Las Vegas, which includes the rental of income-generating properties and residential buildings; Shufersal, which includes retail and the rental of income-generating properties; Adama, which includes the sale of agro products and non-agro products; Clal Insurance Enterprise Holdings, which operates through subsidiary companies in the fields of insurance, pensions and provident funds, in the field of financial services and in the holding of assets and real businesses, and Others.

FINANCIAL RATIOS  of  IRSA-Inversiones y Representaciones GDR (IRS)

Valuation Ratios
P/E Ratio -177.9
Price to Sales 6.8
Price to Book 200.4
Price to Tangible Book
Price to Cash Flow 53.7
Price to Free Cash Flow 107.8
Growth Rates
Sales Growth Rate 859.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 358.6%
Cap. Spend. - 3 Yr. Gr. Rate 56.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 8174.6%
Total Debt to Equity 10180.3%
Interest Coverage 1
Management Effectiveness
Return On Assets 3.4%
Ret/ On Assets - 3 Yr. Avg. 3.4%
Return On Total Capital -2.1%
Ret/ On T. Cap. - 3 Yr. Avg. -0.9%
Return On Equity -69.9%
Return On Equity - 3 Yr. Avg. -22.8%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 29.9%
Gross Margin - 3 Yr. Avg. 43.9%
EBITDA Margin 14.5%
EBITDA Margin - 3 Yr. Avg. 23.8%
Operating Margin 10.7%
Oper. Margin - 3 Yr. Avg. 42.6%
Pre-Tax Margin -5.3%
Pre-Tax Margin - 3 Yr. Avg. 2.6%
Net Profit Margin -3.8%
Net Profit Margin - 3 Yr. Avg. -2.3%
Effective Tax Rate -9.1%
Eff/ Tax Rate - 3 Yr. Avg. 14.7%
Payout Ratio -8.8%

IRS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IRS stock intrinsic value calculation we used $2091 million for the last fiscal year's total revenue generated by IRSA-Inversiones y Representaciones GDR. The default revenue input number comes from 2016 income statement of IRSA-Inversiones y Representaciones GDR. 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 IRS stock valuation model: a) initial revenue growth rate of 8.1% 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 12.2%, whose default value for IRS is calculated based on our internal credit rating of IRSA-Inversiones y Representaciones GDR, 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-Inversiones y Representaciones GDR.
    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 IRS stock the variable cost ratio is equal to 26.2%.

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 IRS 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 6.4% for IRSA-Inversiones y Representaciones GDR.

Corporate tax rate of 27% is the nominal tax rate for IRSA-Inversiones y Representaciones GDR. 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 IRS 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 IRS are equal to 133.6%.

Life of production assets of 16.7 years is the average useful life of capital assets used in IRSA-Inversiones y Representaciones GDR 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 IRS is equal to -10.3%. 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 - $71 million for IRSA-Inversiones y Representaciones GDR - 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 58.894 million for IRSA-Inversiones y Representaciones GDR 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-Inversiones y Representaciones GDR at the current share price and the inputted number of shares is $1.5 billion.

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COMPANY NEWS

▶ 5 Real Estate Companies Gurus Are Buying   [Aug-28-17 03:50PM  GuruFocus.com]
▶ IRSA Inversiones posts 2Q profit   [Feb-13-17 02:26PM  Associated Press]
▶ Clearwater Paper Corp (CLW) Hedge Funds Are Snapping Up   [Dec-09-16 01:22AM  Insider Monkey]
▶ Argentina: Tax Amnesty For $400B In Hidden Assets?   [Aug-18-16 05:21PM  at Barrons.com]
▶ Argentina: If Congress OKs Holdout Bond Deal? Investors Win   [Mar-01-16 11:01AM  at Barrons.com]
▶ Hedge Funds Are Betting On PHH Corporation (PHH)   [Nov-30  01:06PM  at Insider Monkey]
▶ Do Hedge Funds Love SkyWest, Inc. (SKYW)?   [11:05AM  at Insider Monkey]
▶ IRSA Inversiones y Representaciones S.A. Material Fact   [Nov-24  09:30AM  PR Newswire]
▶ IRSA Inversiones y Representaciones S.A. Material Fact   [Nov-20  10:02AM  PR Newswire]
Financial statements of IRS
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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