Intrinsic value of Olin - OLN

Previous Close

$30.48

  Intrinsic Value

$18.19

stock screener

  Rating & Target

sell

-40%

  Value-price divergence*

+43%

Previous close

$30.48

 
Intrinsic value

$18.19

 
Up/down potential

-40%

 
Rating

sell

 
Value-price divergence*

+43%

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

We calculate the intrinsic value of OLN 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 5.1

 

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, %
  94.50
  16.20
  15.08
  14.07
  13.16
  12.35
  11.61
  10.95
  10.36
  9.82
  9.34
  8.91
  8.51
  8.16
  7.85
  7.56
  7.31
  7.08
  6.87
  6.68
  6.51
  6.36
  6.23
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.59
  5.53
Revenue, $m
  5,551
  6,450
  7,423
  8,468
  9,582
  10,766
  12,016
  13,332
  14,712
  16,157
  17,666
  19,240
  20,878
  22,582
  24,354
  26,196
  28,110
  30,099
  32,166
  34,315
  36,550
  38,875
  41,295
  43,815
  46,441
  49,178
  52,032
  55,010
  58,119
  61,366
  64,758
Variable operating expenses, $m
 
  6,190
  7,092
  8,060
  9,093
  10,190
  11,349
  12,568
  13,848
  15,187
  16,586
  17,832
  19,350
  20,930
  22,572
  24,279
  26,053
  27,897
  29,813
  31,804
  33,876
  36,031
  38,274
  40,610
  43,043
  45,580
  48,226
  50,986
  53,867
  56,876
  60,020
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
  5,398
  6,190
  7,092
  8,060
  9,093
  10,190
  11,349
  12,568
  13,848
  15,187
  16,586
  17,832
  19,350
  20,930
  22,572
  24,279
  26,053
  27,897
  29,813
  31,804
  33,876
  36,031
  38,274
  40,610
  43,043
  45,580
  48,226
  50,986
  53,867
  56,876
  60,020
Operating income, $m
  153
  260
  331
  408
  489
  576
  667
  763
  864
  970
  1,081
  1,407
  1,527
  1,652
  1,782
  1,916
  2,056
  2,202
  2,353
  2,510
  2,674
  2,844
  3,021
  3,205
  3,397
  3,598
  3,806
  4,024
  4,252
  4,489
  4,737
EBITDA, $m
  687
  892
  1,027
  1,171
  1,325
  1,489
  1,662
  1,844
  2,035
  2,235
  2,444
  2,661
  2,888
  3,123
  3,369
  3,623
  3,888
  4,163
  4,449
  4,746
  5,055
  5,377
  5,712
  6,060
  6,424
  6,802
  7,197
  7,609
  8,039
  8,488
  8,957
Interest expense (income), $m
  201
  191
  247
  308
  373
  442
  516
  594
  676
  762
  852
  946
  1,044
  1,147
  1,253
  1,363
  1,478
  1,597
  1,721
  1,850
  1,984
  2,124
  2,269
  2,419
  2,577
  2,740
  2,911
  3,089
  3,275
  3,468
  3,671
Earnings before tax, $m
  -34
  69
  84
  100
  116
  133
  151
  169
  188
  208
  228
  461
  483
  505
  529
  553
  578
  604
  632
  660
  689
  720
  752
  786
  821
  857
  895
  935
  977
  1,021
  1,067
Tax expense, $m
  -30
  19
  23
  27
  31
  36
  41
  46
  51
  56
  62
  125
  130
  136
  143
  149
  156
  163
  171
  178
  186
  194
  203
  212
  222
  231
  242
  253
  264
  276
  288
Net income, $m
  -4
  50
  61
  73
  85
  97
  110
  124
  138
  152
  167
  337
  353
  369
  386
  404
  422
  441
  461
  482
  503
  526
  549
  574
  599
  626
  654
  683
  713
  745
  779

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  185
  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
  8,763
  9,969
  11,473
  13,087
  14,810
  16,639
  18,571
  20,605
  22,740
  24,973
  27,305
  29,737
  32,269
  34,903
  37,642
  40,488
  43,446
  46,520
  49,715
  53,037
  56,491
  60,085
  63,825
  67,720
  71,779
  76,009
  80,420
  85,023
  89,828
  94,846
  100,089
Adjusted assets (=assets-cash), $m
  8,578
  9,969
  11,473
  13,087
  14,810
  16,639
  18,571
  20,605
  22,740
  24,973
  27,305
  29,737
  32,269
  34,903
  37,642
  40,488
  43,446
  46,520
  49,715
  53,037
  56,491
  60,085
  63,825
  67,720
  71,779
  76,009
  80,420
  85,023
  89,828
  94,846
  100,089
Revenue / Adjusted assets
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
  0.647
Average production assets, $m
  4,484
  5,212
  5,998
  6,842
  7,742
  8,699
  9,709
  10,772
  11,888
  13,055
  14,274
  15,546
  16,869
  18,246
  19,678
  21,166
  22,713
  24,320
  25,990
  27,726
  29,532
  31,411
  33,366
  35,403
  37,524
  39,736
  42,042
  44,448
  46,960
  49,583
  52,324
Working capital, $m
  623
  600
  690
  787
  891
  1,001
  1,117
  1,240
  1,368
  1,503
  1,643
  1,789
  1,942
  2,100
  2,265
  2,436
  2,614
  2,799
  2,991
  3,191
  3,399
  3,615
  3,840
  4,075
  4,319
  4,574
  4,839
  5,116
  5,405
  5,707
  6,022
Total debt, $m
  3,618
  4,575
  5,698
  6,904
  8,191
  9,557
  11,001
  12,520
  14,114
  15,783
  17,525
  19,341
  21,233
  23,200
  25,246
  27,373
  29,582
  31,879
  34,265
  36,746
  39,327
  42,011
  44,805
  47,715
  50,747
  53,907
  57,202
  60,640
  64,230
  67,978
  71,894
Total liabilities, $m
  6,490
  7,447
  8,570
  9,776
  11,063
  12,429
  13,873
  15,392
  16,986
  18,655
  20,397
  22,213
  24,105
  26,072
  28,118
  30,245
  32,454
  34,751
  37,137
  39,618
  42,199
  44,883
  47,677
  50,587
  53,619
  56,779
  60,074
  63,512
  67,102
  70,850
  74,766
Total equity, $m
  2,273
  2,522
  2,903
  3,311
  3,747
  4,210
  4,699
  5,213
  5,753
  6,318
  6,908
  7,523
  8,164
  8,830
  9,523
  10,243
  10,992
  11,770
  12,578
  13,418
  14,292
  15,201
  16,148
  17,133
  18,160
  19,230
  20,346
  21,511
  22,727
  23,996
  25,322
Total liabilities and equity, $m
  8,763
  9,969
  11,473
  13,087
  14,810
  16,639
  18,572
  20,605
  22,739
  24,973
  27,305
  29,736
  32,269
  34,902
  37,641
  40,488
  43,446
  46,521
  49,715
  53,036
  56,491
  60,084
  63,825
  67,720
  71,779
  76,009
  80,420
  85,023
  89,829
  94,846
  100,088
Debt-to-equity ratio
  1.592
  1.810
  1.960
  2.090
  2.190
  2.270
  2.340
  2.400
  2.450
  2.500
  2.540
  2.570
  2.600
  2.630
  2.650
  2.670
  2.690
  2.710
  2.720
  2.740
  2.750
  2.760
  2.770
  2.780
  2.790
  2.800
  2.810
  2.820
  2.830
  2.830
  2.840
Adjusted equity ratio
  0.243
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -4
  50
  61
  73
  85
  97
  110
  124
  138
  152
  167
  337
  353
  369
  386
  404
  422
  441
  461
  482
  503
  526
  549
  574
  599
  626
  654
  683
  713
  745
  779
Depreciation, amort., depletion, $m
  534
  632
  695
  764
  836
  913
  995
  1,081
  1,170
  1,265
  1,363
  1,254
  1,360
  1,471
  1,587
  1,707
  1,832
  1,961
  2,096
  2,236
  2,382
  2,533
  2,691
  2,855
  3,026
  3,204
  3,390
  3,585
  3,787
  3,999
  4,220
Funds from operations, $m
  671
  682
  757
  837
  921
  1,011
  1,105
  1,204
  1,308
  1,416
  1,530
  1,590
  1,713
  1,840
  1,973
  2,111
  2,254
  2,402
  2,557
  2,718
  2,885
  3,059
  3,240
  3,429
  3,625
  3,830
  4,044
  4,267
  4,500
  4,744
  4,998
Change in working capital, $m
  68
  84
  90
  97
  104
  110
  116
  122
  128
  134
  140
  146
  152
  158
  165
  171
  178
  185
  192
  200
  208
  216
  225
  234
  244
  255
  265
  277
  289
  302
  315
Cash from operations, $m
  603
  599
  666
  739
  817
  901
  989
  1,082
  1,180
  1,282
  1,389
  1,444
  1,561
  1,682
  1,808
  1,939
  2,076
  2,218
  2,365
  2,518
  2,677
  2,843
  3,015
  3,194
  3,381
  3,576
  3,779
  3,990
  4,211
  4,442
  4,683
Maintenance CAPEX, $m
  0
  -362
  -420
  -484
  -552
  -624
  -701
  -783
  -869
  -959
  -1,053
  -1,151
  -1,254
  -1,360
  -1,471
  -1,587
  -1,707
  -1,832
  -1,961
  -2,096
  -2,236
  -2,382
  -2,533
  -2,691
  -2,855
  -3,026
  -3,204
  -3,390
  -3,585
  -3,787
  -3,999
New CAPEX, $m
  -278
  -728
  -786
  -844
  -901
  -956
  -1,010
  -1,063
  -1,116
  -1,168
  -1,219
  -1,271
  -1,324
  -1,377
  -1,432
  -1,488
  -1,546
  -1,607
  -1,670
  -1,736
  -1,806
  -1,879
  -1,955
  -2,036
  -2,122
  -2,211
  -2,306
  -2,406
  -2,512
  -2,623
  -2,741
Cash from investing activities, $m
  -474
  -1,090
  -1,206
  -1,328
  -1,453
  -1,580
  -1,711
  -1,846
  -1,985
  -2,127
  -2,272
  -2,422
  -2,578
  -2,737
  -2,903
  -3,075
  -3,253
  -3,439
  -3,631
  -3,832
  -4,042
  -4,261
  -4,488
  -4,727
  -4,977
  -5,237
  -5,510
  -5,796
  -6,097
  -6,410
  -6,740
Free cash flow, $m
  129
  -491
  -540
  -588
  -635
  -680
  -723
  -764
  -805
  -844
  -883
  -978
  -1,017
  -1,056
  -1,095
  -1,136
  -1,178
  -1,221
  -1,267
  -1,314
  -1,365
  -1,418
  -1,474
  -1,533
  -1,595
  -1,662
  -1,732
  -1,806
  -1,885
  -1,968
  -2,057
Issuance/(repayment) of debt, $m
  -205
  1,037
  1,123
  1,206
  1,287
  1,366
  1,443
  1,519
  1,594
  1,668
  1,742
  1,816
  1,891
  1,968
  2,046
  2,126
  2,210
  2,296
  2,387
  2,481
  2,580
  2,685
  2,794
  2,910
  3,032
  3,160
  3,295
  3,438
  3,589
  3,748
  3,916
Issuance/(repurchase) of shares, $m
  1
  304
  319
  336
  351
  365
  379
  391
  402
  413
  423
  279
  288
  297
  307
  316
  326
  336
  347
  359
  371
  383
  397
  412
  428
  444
  462
  482
  502
  524
  548
Cash from financing (excl. dividends), $m  
  -206
  1,341
  1,442
  1,542
  1,638
  1,731
  1,822
  1,910
  1,996
  2,081
  2,165
  2,095
  2,179
  2,265
  2,353
  2,442
  2,536
  2,632
  2,734
  2,840
  2,951
  3,068
  3,191
  3,322
  3,460
  3,604
  3,757
  3,920
  4,091
  4,272
  4,464
Total cash flow (excl. dividends), $m
  -76
  850
  902
  953
  1,003
  1,052
  1,099
  1,146
  1,192
  1,237
  1,283
  1,117
  1,163
  1,210
  1,258
  1,307
  1,358
  1,412
  1,467
  1,525
  1,586
  1,650
  1,718
  1,789
  1,864
  1,943
  2,026
  2,114
  2,206
  2,304
  2,407
Retained Cash Flow (-), $m
  146
  -354
  -380
  -408
  -436
  -463
  -489
  -515
  -540
  -565
  -590
  -615
  -641
  -666
  -693
  -720
  -748
  -778
  -808
  -840
  -874
  -909
  -946
  -985
  -1,027
  -1,070
  -1,116
  -1,165
  -1,216
  -1,270
  -1,326
Prev. year cash balance distribution, $m
 
  105
  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
 
  601
  522
  545
  567
  589
  610
  631
  652
  672
  693
  501
  522
  543
  565
  587
  610
  634
  659
  685
  712
  741
  771
  803
  837
  872
  910
  949
  991
  1,035
  1,081
Discount rate, %
 
  9.10
  9.56
  10.03
  10.53
  11.06
  11.61
  12.19
  12.80
  13.44
  14.12
  14.82
  15.56
  16.34
  17.16
  18.02
  18.92
  19.86
  20.86
  21.90
  23.00
  24.15
  25.35
  26.62
  27.95
  29.35
  30.82
  32.36
  33.97
  35.67
  37.46
PV of cash for distribution, $m
 
  551
  435
  409
  380
  349
  316
  282
  249
  216
  185
  110
  92
  76
  62
  49
  38
  29
  22
  16
  11
  8
  5
  4
  2
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  94.1
  89.0
  84.7
  80.8
  77.4
  74.4
  71.7
  69.3
  67.2
  65.2
  64.1
  63.0
  62.0
  61.0
  60.1
  59.3
  58.5
  57.7
  57.0
  56.3
  55.6
  55.0
  54.4
  53.7
  53.2
  52.6
  52.0
  51.5
  51.0
  50.5

Olin Corporation manufactures and distributes chemical products in the United States and internationally. It operates through three segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products, and potassium hydroxide. The Epoxy segment provides allyl chloride and epichlorohydrin for use in resins and other plastic materials, water purification, and pesticides, as well as for the manufacturers of polymers; liquid epoxy resins used in adhesives, paints and coatings, composites, and flooring; and converted epoxy resins and additives for use in electrical laminates, paints and coatings, wind blades, electronics, and construction. The Winchester segment offers sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is headquartered in Clayton, Missouri.

FINANCIAL RATIOS  of  Olin (OLN)

Valuation Ratios
P/E Ratio -1260.3
Price to Sales 0.9
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 8.4
Price to Free Cash Flow 15.5
Growth Rates
Sales Growth Rate 94.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 112.2%
Cap. Spend. - 3 Yr. Gr. Rate 25%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 155.7%
Total Debt to Equity 159.2%
Interest Coverage 1
Management Effectiveness
Return On Assets 0.2%
Ret/ On Assets - 3 Yr. Avg. 1.6%
Return On Total Capital -0.1%
Ret/ On T. Cap. - 3 Yr. Avg. 2%
Return On Equity -0.2%
Return On Equity - 3 Yr. Avg. 3.3%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 11.3%
Gross Margin - 3 Yr. Avg. 13.9%
EBITDA Margin 12.6%
EBITDA Margin - 3 Yr. Avg. 12.4%
Operating Margin 2.8%
Oper. Margin - 3 Yr. Avg. 5.1%
Pre-Tax Margin -0.6%
Pre-Tax Margin - 3 Yr. Avg. 2.3%
Net Profit Margin -0.1%
Net Profit Margin - 3 Yr. Avg. 1.5%
Effective Tax Rate 88.2%
Eff/ Tax Rate - 3 Yr. Avg. 79.4%
Payout Ratio -3300%

OLN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the OLN stock intrinsic value calculation we used $5551 million for the last fiscal year's total revenue generated by Olin. The default revenue input number comes from 2016 income statement of Olin. 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 OLN stock valuation model: a) initial revenue growth rate of 16.2% 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 9.1%, whose default value for OLN is calculated based on our internal credit rating of Olin, 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 Olin.
    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 OLN stock the variable cost ratio is equal to 96.5%.

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 OLN 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 5.4% for Olin.

Corporate tax rate of 27% is the nominal tax rate for Olin. 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 OLN 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 OLN are equal to 80.8%.

Life of production assets of 12.4 years is the average useful life of capital assets used in Olin 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 OLN is equal to 9.3%. 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 - $2273 million for Olin - 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 166.305 million for Olin 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 Olin at the current share price and the inputted number of shares is $5.1 billion.

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COMPANY NEWS

▶ Olin Declares 363rd Consecutive Quarterly Dividend   [Jul-27-17 05:15PM  PR Newswire]
▶ ETFs with exposure to Olin Corp. : July 24, 2017   [Jul-24-17 05:48PM  Capital Cube]
▶ ETFs with exposure to Olin Corp. : July 14, 2017   [Jul-14-17 04:02PM  Capital Cube]
▶ Olin Corp. Value Analysis (NYSE:OLN) : July 7, 2017   [Jul-07-17 04:07PM  Capital Cube]
▶ Olin Provides Update on 2Q17 Earnings   [Jun-26-17 11:05AM  Market Realist]
▶ Olin Updates Second Quarter 2017 Outlook   [Jun-19-17 05:30PM  PR Newswire]
▶ ETFs with exposure to Olin Corp. : June 13, 2017   [Jun-13-17 12:47PM  Capital Cube]
▶ Five Stocks You Might Want to Sell   [Jun-09-17 03:12PM  GuruFocus.com]
▶ These Stocks Have Changed Direction   [Jun-05-17 12:00PM  TheStreet.com]
▶ ETFs with exposure to Olin Corp. : May 25, 2017   [May-25-17 12:45PM  Capital Cube]
▶ "Fast Money' final trades: OLN, TGT & more   [May-18-17 05:59PM  CNBC Videos]
▶ ETFs with exposure to Olin Corp. : May 8, 2017   [May-08-17 05:01PM  Capital Cube]
▶ Olin misses 1Q profit forecasts   [May-02-17 07:23PM  Associated Press]
▶ Olin Declares 362nd Consecutive Quarterly Dividend   [Apr-27-17 04:30PM  PR Newswire]
▶ Olin Corp. Value Analysis (NYSE:OLN) : April 12, 2017   [Apr-12-17 01:28PM  Capital Cube]
▶ 3 Top Gun Companies to Buy in 2017   [Mar-27-17 02:00PM  Motley Fool]
▶ 3 Top Gun Companies to Buy in 2017   [02:00PM  at Motley Fool]
▶ Olins New $500 Million Debt to Clear Term Loans   [Mar-13-17 03:28PM  Market Realist]
▶ Olin Announces Pricing Terms Of Debt Offering   [Mar-06-17 05:39PM  PR Newswire]
▶ Olin To Pursue Registered Debt Offering   [09:05AM  PR Newswire]
▶ Olin Chairman Rupp to retire, successor named   [Feb-28-17 08:50AM  at bizjournals.com]
▶ Olin Chairman Rupp to retire, successor named   [08:50AM  American City Business Journals]
▶ Why Olin Corporation Stock Just Jumped 12%   [01:41PM  at Motley Fool]
▶ Olin Stock's Fantastic Run in 2016 Was Way Too Much   [Jan-05-17 01:22PM  at Motley Fool]
▶ Why Smith & Wesson and Sturm, Ruger Stocks Sank in November   [Dec-05-16 08:07AM  at Motley Fool]
▶ 2 chemical stocks to buy and 2 to sell   [04:13AM  at MarketWatch]
▶ Smart Money Is Going Crazy for CoreCivic Inc (CXW)   [Nov-26-16 09:29PM  at Insider Monkey]
▶ Are There Gun Stocks in Your Portfolio You Don't Know About?   [Nov-16-16 07:11PM  at Motley Fool]
Stock chart of OLN Financial statements of OLN Annual reports of OLN
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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