Intrinsic value of Mead Johnson Nutrition - MJN

Previous Close

$89.99

  Intrinsic Value

$17.33

stock screener

  Rating & Target

str. sell

-81%

  Value-price divergence*

-75%

Previous close

$89.99

 
Intrinsic value

$17.33

 
Up/down potential

-81%

 
Rating

str. sell

 
Value-price divergence*

-75%

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

We calculate the intrinsic value of MJN 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 16.6

 

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, %
  -8.06
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  3,743
  3,818
  3,906
  4,006
  4,119
  4,244
  4,381
  4,530
  4,691
  4,865
  5,052
  5,252
  5,465
  5,692
  5,933
  6,189
  6,460
  6,747
  7,051
  7,372
  7,710
  8,068
  8,445
  8,842
  9,261
  9,701
  10,166
  10,654
  11,168
  11,709
  12,278
Variable operating expenses, $m
 
  2,455
  2,511
  2,575
  2,647
  2,727
  2,815
  2,910
  3,014
  3,125
  3,245
  3,362
  3,498
  3,643
  3,798
  3,961
  4,135
  4,319
  4,513
  4,719
  4,935
  5,164
  5,405
  5,660
  5,928
  6,210
  6,507
  6,820
  7,149
  7,495
  7,859
Fixed operating expenses, $m
 
  542
  556
  570
  584
  599
  613
  629
  645
  661
  677
  694
  711
  729
  747
  766
  785
  805
  825
  846
  867
  888
  911
  933
  957
  981
  1,005
  1,030
  1,056
  1,083
  1,110
Total operating expenses, $m
  2,924
  2,997
  3,067
  3,145
  3,231
  3,326
  3,428
  3,539
  3,659
  3,786
  3,922
  4,056
  4,209
  4,372
  4,545
  4,727
  4,920
  5,124
  5,338
  5,565
  5,802
  6,052
  6,316
  6,593
  6,885
  7,191
  7,512
  7,850
  8,205
  8,578
  8,969
Operating income, $m
  819
  821
  839
  861
  888
  918
  952
  991
  1,033
  1,080
  1,130
  1,196
  1,255
  1,319
  1,388
  1,461
  1,540
  1,623
  1,713
  1,807
  1,908
  2,015
  2,129
  2,249
  2,376
  2,511
  2,653
  2,804
  2,963
  3,132
  3,309
EBITDA, $m
  919
  924
  944
  968
  997
  1,031
  1,068
  1,110
  1,157
  1,207
  1,262
  1,322
  1,387
  1,456
  1,530
  1,610
  1,695
  1,786
  1,882
  1,985
  2,093
  2,209
  2,331
  2,461
  2,599
  2,744
  2,898
  3,060
  3,232
  3,413
  3,604
Interest expense (income), $m
  120
  119
  85
  89
  93
  97
  102
  107
  113
  120
  126
  134
  142
  150
  159
  168
  178
  189
  200
  212
  225
  238
  252
  267
  283
  299
  316
  335
  354
  374
  395
Earnings before tax, $m
  713
  702
  754
  773
  795
  821
  850
  883
  920
  960
  1,004
  1,062
  1,114
  1,169
  1,229
  1,293
  1,361
  1,434
  1,512
  1,595
  1,683
  1,777
  1,876
  1,982
  2,094
  2,212
  2,337
  2,469
  2,610
  2,758
  2,914
Tax expense, $m
  164
  189
  204
  209
  215
  222
  230
  238
  248
  259
  271
  287
  301
  316
  332
  349
  368
  387
  408
  431
  455
  480
  507
  535
  565
  597
  631
  667
  705
  745
  787
Net income, $m
  545
  512
  550
  564
  580
  599
  621
  645
  671
  701
  733
  776
  813
  854
  897
  944
  994
  1,047
  1,104
  1,164
  1,229
  1,297
  1,370
  1,447
  1,528
  1,615
  1,706
  1,803
  1,905
  2,013
  2,127

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,795
  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
  4,088
  4,168
  4,264
  4,373
  4,496
  4,633
  4,782
  4,945
  5,121
  5,311
  5,515
  5,733
  5,966
  6,214
  6,477
  6,756
  7,053
  7,366
  7,697
  8,048
  8,417
  8,808
  9,219
  9,653
  10,110
  10,591
  11,098
  11,631
  12,192
  12,783
  13,404
Adjusted assets (=assets-cash), $m
  2,293
  4,168
  4,264
  4,373
  4,496
  4,633
  4,782
  4,945
  5,121
  5,311
  5,515
  5,733
  5,966
  6,214
  6,477
  6,756
  7,053
  7,366
  7,697
  8,048
  8,417
  8,808
  9,219
  9,653
  10,110
  10,591
  11,098
  11,631
  12,192
  12,783
  13,404
Revenue / Adjusted assets
  1.632
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
  0.916
Average production assets, $m
  1,007
  1,027
  1,051
  1,078
  1,108
  1,142
  1,178
  1,219
  1,262
  1,309
  1,359
  1,413
  1,470
  1,531
  1,596
  1,665
  1,738
  1,815
  1,897
  1,983
  2,074
  2,170
  2,272
  2,378
  2,491
  2,610
  2,735
  2,866
  3,004
  3,150
  3,303
Working capital, $m
  1,463
  -336
  -344
  -353
  -362
  -373
  -385
  -399
  -413
  -428
  -445
  -462
  -481
  -501
  -522
  -545
  -568
  -594
  -620
  -649
  -679
  -710
  -743
  -778
  -815
  -854
  -895
  -938
  -983
  -1,030
  -1,080
Total debt, $m
  2,980
  2,130
  2,216
  2,315
  2,426
  2,548
  2,683
  2,830
  2,988
  3,159
  3,343
  3,539
  3,748
  3,971
  4,208
  4,460
  4,726
  5,008
  5,307
  5,622
  5,955
  6,306
  6,676
  7,067
  7,478
  7,911
  8,367
  8,847
  9,352
  9,884
  10,443
Total liabilities, $m
  4,600
  3,751
  3,837
  3,936
  4,047
  4,169
  4,304
  4,451
  4,609
  4,780
  4,964
  5,160
  5,369
  5,592
  5,829
  6,081
  6,347
  6,629
  6,928
  7,243
  7,576
  7,927
  8,297
  8,688
  9,099
  9,532
  9,988
  10,468
  10,973
  11,505
  12,064
Total equity, $m
  -513
  417
  426
  437
  450
  463
  478
  495
  512
  531
  552
  573
  597
  621
  648
  676
  705
  737
  770
  805
  842
  881
  922
  965
  1,011
  1,059
  1,110
  1,163
  1,219
  1,278
  1,340
Total liabilities and equity, $m
  4,087
  4,168
  4,263
  4,373
  4,497
  4,632
  4,782
  4,946
  5,121
  5,311
  5,516
  5,733
  5,966
  6,213
  6,477
  6,757
  7,052
  7,366
  7,698
  8,048
  8,418
  8,808
  9,219
  9,653
  10,110
  10,591
  11,098
  11,631
  12,192
  12,783
  13,404
Debt-to-equity ratio
  -5.809
  5.110
  5.200
  5.290
  5.390
  5.500
  5.610
  5.720
  5.830
  5.950
  6.060
  6.170
  6.280
  6.390
  6.500
  6.600
  6.700
  6.800
  6.890
  6.990
  7.070
  7.160
  7.240
  7.320
  7.400
  7.470
  7.540
  7.610
  7.670
  7.730
  7.790
Adjusted equity ratio
  -1.005
  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
  545
  512
  550
  564
  580
  599
  621
  645
  671
  701
  733
  776
  813
  854
  897
  944
  994
  1,047
  1,104
  1,164
  1,229
  1,297
  1,370
  1,447
  1,528
  1,615
  1,706
  1,803
  1,905
  2,013
  2,127
Depreciation, amort., depletion, $m
  100
  103
  105
  107
  110
  113
  116
  120
  124
  128
  132
  126
  131
  137
  142
  149
  155
  162
  169
  177
  185
  194
  203
  212
  222
  233
  244
  256
  268
  281
  295
Funds from operations, $m
  687
  615
  655
  671
  690
  712
  737
  764
  795
  829
  865
  902
  944
  990
  1,040
  1,093
  1,149
  1,209
  1,273
  1,342
  1,414
  1,491
  1,573
  1,659
  1,751
  1,848
  1,950
  2,059
  2,173
  2,294
  2,422
Change in working capital, $m
  -5
  -7
  -8
  -9
  -10
  -11
  -12
  -13
  -14
  -15
  -16
  -18
  -19
  -20
  -21
  -23
  -24
  -25
  -27
  -28
  -30
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -45
  -48
  -50
Cash from operations, $m
  692
  621
  663
  680
  700
  723
  749
  778
  809
  844
  881
  919
  963
  1,010
  1,061
  1,115
  1,173
  1,234
  1,300
  1,370
  1,444
  1,522
  1,606
  1,694
  1,788
  1,886
  1,991
  2,102
  2,218
  2,342
  2,472
Maintenance CAPEX, $m
  0
  -90
  -92
  -94
  -96
  -99
  -102
  -105
  -109
  -113
  -117
  -121
  -126
  -131
  -137
  -142
  -149
  -155
  -162
  -169
  -177
  -185
  -194
  -203
  -212
  -222
  -233
  -244
  -256
  -268
  -281
New CAPEX, $m
  -149
  -21
  -24
  -27
  -30
  -34
  -37
  -40
  -43
  -47
  -50
  -54
  -57
  -61
  -65
  -69
  -73
  -77
  -82
  -86
  -91
  -96
  -101
  -107
  -113
  -119
  -125
  -131
  -138
  -145
  -153
Cash from investing activities, $m
  -149
  -111
  -116
  -121
  -126
  -133
  -139
  -145
  -152
  -160
  -167
  -175
  -183
  -192
  -202
  -211
  -222
  -232
  -244
  -255
  -268
  -281
  -295
  -310
  -325
  -341
  -358
  -375
  -394
  -413
  -434
Free cash flow, $m
  543
  511
  547
  559
  574
  591
  610
  632
  657
  684
  714
  744
  780
  818
  859
  904
  951
  1,002
  1,056
  1,114
  1,176
  1,241
  1,311
  1,384
  1,463
  1,545
  1,633
  1,726
  1,824
  1,928
  2,038
Issuance/(repayment) of debt, $m
  1
  -850
  86
  99
  111
  123
  135
  147
  159
  171
  183
  196
  209
  223
  237
  251
  266
  282
  298
  315
  333
  351
  370
  390
  411
  433
  456
  480
  505
  531
  559
Issuance/(repurchase) of shares, $m
  -100
  418
  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  
  -91
  -432
  86
  99
  111
  123
  135
  147
  159
  171
  183
  196
  209
  223
  237
  251
  266
  282
  298
  315
  333
  351
  370
  390
  411
  433
  456
  480
  505
  531
  559
Total cash flow (excl. dividends), $m
  403
  79
  634
  658
  684
  713
  745
  779
  816
  855
  898
  940
  989
  1,041
  1,096
  1,155
  1,218
  1,284
  1,355
  1,429
  1,508
  1,592
  1,681
  1,775
  1,874
  1,979
  2,089
  2,206
  2,329
  2,460
  2,597
Retained Cash Flow (-), $m
  -119
  -930
  -10
  -11
  -12
  -14
  -15
  -16
  -18
  -19
  -20
  -22
  -23
  -25
  -26
  -28
  -30
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -46
  -48
  -51
  -53
  -56
  -59
  -62
Prev. year cash balance distribution, $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 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
 
  -851
  624
  647
  672
  700
  730
  763
  798
  836
  877
  919
  966
  1,016
  1,070
  1,127
  1,188
  1,253
  1,321
  1,394
  1,471
  1,553
  1,640
  1,731
  1,828
  1,930
  2,039
  2,153
  2,273
  2,401
  2,535
Discount rate, %
 
  5.30
  5.57
  5.84
  6.14
  6.44
  6.76
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.52
  9.99
  10.49
  11.02
  11.57
  12.15
  12.76
  13.39
  14.06
  14.77
  15.50
  16.28
  17.09
  17.95
  18.85
  19.79
  20.78
  21.82
PV of cash for distribution, $m
 
  -808
  560
  545
  530
  512
  493
  472
  449
  424
  398
  369
  341
  312
  282
  252
  223
  195
  168
  142
  119
  98
  79
  63
  49
  37
  28
  20
  14
  10
  7
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

Mead Johnson Nutrition Company manufactures, distributes, and sells infant formula, children’s nutrition, and other nutritional products. The company offers routine infant formula products for use as infant’s source of nutrition and supplement to breastfeeding under the Enfamil Premium, Enfamil A+, Enfalac Premium, and Enfapro A+ names; and solutions for feeding tolerance problems, including spit-up, fussiness, gas, and lactose intolerance under the Enfamil Gentlease, Enfamil A.R., Enfamil ProSobee, and Enfamil LactoFree names. It also provides specialty formula products, such as Nutramigen for cow’s milk protein allergies, and Puramino, an amino acid formula for severe cow’s milk protein allergies or other food allergies; Enfamil Premature for premature and low birth weight infants; EnfaCare, a hypercaloric formula for premature babies at home; and medical foods for nutritional management of individuals with rare, inborn errors of metabolism comprising maple syrup urine disease under the Mead Johnson BCAD and Mead Johnson Phenyl-Free names. In addition, the company offers children’s nutrition products for meeting nutritional needs of toddlers and older children under the Enfagrow, Sustagen, and Lactum names, as well as milk modifiers under the ChocoMilk and Cal-C-Tose names. Further, it provides a range of other products, which comprise pre-natal and post-natal nutritional supplements for expectant and nursing mothers under the Expecta and EnfaMama names; pediatric vitamin products that provide multivitamins and iron supplements for infants under the Enfamil Poly-Vi-Sol name; and Enfalyte, an oral electrolyte solution for infants and children to replace electrolytes and water to enable restore hydration. The company markets its products to mothers, health care professionals, and retailers in approximately 50 countries in Asia, North America, Latin America, and Europe. Mead Johnson Nutrition Company was founded in 1905 and is headquartered in Glenview, Illinois.

FINANCIAL RATIOS  of  Mead Johnson Nutrition (MJN)

Valuation Ratios
P/E Ratio 30.3
Price to Sales 4.4
Price to Book -32.2
Price to Tangible Book
Price to Cash Flow 23.8
Price to Free Cash Flow 30.4
Growth Rates
Sales Growth Rate -8.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -14.4%
Cap. Spend. - 3 Yr. Gr. Rate -9.1%
Financial Strength
Quick Ratio 449
Current Ratio 0
LT Debt to Equity -580.1%
Total Debt to Equity -580.9%
Interest Coverage 7
Management Effectiveness
Return On Assets 15.8%
Ret/ On Assets - 3 Yr. Avg. 18.5%
Return On Total Capital 22.6%
Ret/ On T. Cap. - 3 Yr. Avg. 29.8%
Return On Equity -95.2%
Return On Equity - 3 Yr. Avg. -728%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 64.2%
Gross Margin - 3 Yr. Avg. 63.3%
EBITDA Margin 24.9%
EBITDA Margin - 3 Yr. Avg. 25.1%
Operating Margin 21.9%
Oper. Margin - 3 Yr. Avg. 22.4%
Pre-Tax Margin 19%
Pre-Tax Margin - 3 Yr. Avg. 20.5%
Net Profit Margin 14.6%
Net Profit Margin - 3 Yr. Avg. 15.7%
Effective Tax Rate 23%
Eff/ Tax Rate - 3 Yr. Avg. 23.1%
Payout Ratio 56.7%

MJN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MJN stock intrinsic value calculation we used $3743 million for the last fiscal year's total revenue generated by Mead Johnson Nutrition. The default revenue input number comes from 2016 income statement of Mead Johnson Nutrition. 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 MJN stock valuation model: a) initial revenue growth rate of 2% 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 5.3%, whose default value for MJN is calculated based on our internal credit rating of Mead Johnson Nutrition, 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 Mead Johnson Nutrition.
    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 MJN stock the variable cost ratio is equal to 64.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $529 million in the base year in the intrinsic value calculation for MJN 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 4% for Mead Johnson Nutrition.

Corporate tax rate of 27% is the nominal tax rate for Mead Johnson Nutrition. 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 MJN 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 MJN are equal to 26.9%.

Life of production assets of 11.2 years is the average useful life of capital assets used in Mead Johnson Nutrition 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 MJN is equal to -8.8%. 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 - $-513 million for Mead Johnson Nutrition - 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 184.542 million for Mead Johnson Nutrition 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 Mead Johnson Nutrition at the current share price and the inputted number of shares is $16.6 billion.

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Stock chart of MJN Financial statements of MJN Annual reports of MJN
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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