Intrinsic value of Grupo Simec ADR - SIM

Previous Close

$11.56

  Intrinsic Value

$2.43

stock screener

  Rating & Target

str. sell

-79%

  Value-price divergence*

+1712%

Previous close

$11.56

 
Intrinsic value

$2.43

 
Up/down potential

-79%

 
Rating

str. sell

 
Value-price divergence*

+1712%

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

We calculate the intrinsic value of SIM 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 1.9

 

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, %
  12.42
  29.80
  27.32
  25.09
  23.08
  21.27
  19.64
  18.18
  16.86
  15.68
  14.61
  13.65
  12.78
  12.00
  11.30
  10.67
  10.11
  9.60
  9.14
  8.72
  8.35
  8.02
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
Revenue, $m
  1,394
  1,809
  2,304
  2,882
  3,547
  4,301
  5,146
  6,082
  7,107
  8,221
  9,422
  10,708
  12,077
  13,527
  15,056
  16,663
  18,347
  20,107
  21,944
  23,858
  25,850
  27,922
  30,076
  32,314
  34,640
  37,058
  39,570
  42,183
  44,900
  47,728
  50,672
Variable operating expenses, $m
 
  1,962
  2,496
  3,120
  3,838
  4,652
  5,564
  6,574
  7,681
  8,883
  10,180
  11,558
  13,036
  14,601
  16,251
  17,986
  19,803
  21,704
  23,686
  25,752
  27,903
  30,139
  32,464
  34,880
  37,391
  40,000
  42,712
  45,532
  48,465
  51,518
  54,695
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
  1,221
  1,962
  2,496
  3,120
  3,838
  4,652
  5,564
  6,574
  7,681
  8,883
  10,180
  11,558
  13,036
  14,601
  16,251
  17,986
  19,803
  21,704
  23,686
  25,752
  27,903
  30,139
  32,464
  34,880
  37,391
  40,000
  42,712
  45,532
  48,465
  51,518
  54,695
Operating income, $m
  174
  -153
  -192
  -238
  -291
  -351
  -418
  -492
  -574
  -662
  -757
  -850
  -959
  -1,074
  -1,195
  -1,323
  -1,457
  -1,597
  -1,742
  -1,894
  -2,053
  -2,217
  -2,388
  -2,566
  -2,750
  -2,942
  -3,142
  -3,349
  -3,565
  -3,790
  -4,023
EBITDA, $m
  246
  -91
  -116
  -145
  -178
  -216
  -258
  -305
  -357
  -413
  -473
  -538
  -606
  -679
  -756
  -836
  -921
  -1,009
  -1,102
  -1,198
  -1,298
  -1,402
  -1,510
  -1,622
  -1,739
  -1,860
  -1,986
  -2,118
  -2,254
  -2,396
  -2,544
Interest expense (income), $m
  2
  0
  4
  10
  16
  23
  31
  40
  50
  60
  72
  85
  99
  113
  128
  145
  162
  179
  198
  217
  238
  259
  281
  303
  327
  352
  377
  404
  432
  460
  490
Earnings before tax, $m
  267
  -153
  -196
  -248
  -307
  -373
  -449
  -532
  -623
  -722
  -830
  -935
  -1,057
  -1,187
  -1,324
  -1,468
  -1,618
  -1,776
  -1,940
  -2,112
  -2,290
  -2,476
  -2,669
  -2,869
  -3,078
  -3,294
  -3,519
  -3,753
  -3,997
  -4,250
  -4,514
Tax expense, $m
  47
  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
Net income, $m
  146
  -153
  -196
  -248
  -307
  -373
  -449
  -532
  -623
  -722
  -830
  -935
  -1,057
  -1,187
  -1,324
  -1,468
  -1,618
  -1,776
  -1,940
  -2,112
  -2,290
  -2,476
  -2,669
  -2,869
  -3,078
  -3,294
  -3,519
  -3,753
  -3,997
  -4,250
  -4,514

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  404
  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
  2,110
  2,215
  2,820
  3,527
  4,341
  5,265
  6,299
  7,444
  8,699
  10,063
  11,533
  13,107
  14,782
  16,557
  18,428
  20,395
  22,456
  24,611
  26,859
  29,202
  31,640
  34,176
  36,813
  39,552
  42,399
  45,358
  48,434
  51,631
  54,957
  58,419
  62,022
Adjusted assets (=assets-cash), $m
  1,706
  2,215
  2,820
  3,527
  4,341
  5,265
  6,299
  7,444
  8,699
  10,063
  11,533
  13,107
  14,782
  16,557
  18,428
  20,395
  22,456
  24,611
  26,859
  29,202
  31,640
  34,176
  36,813
  39,552
  42,399
  45,358
  48,434
  51,631
  54,957
  58,419
  62,022
Revenue / Adjusted assets
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
Average production assets, $m
  407
  528
  673
  841
  1,036
  1,256
  1,503
  1,776
  2,075
  2,401
  2,751
  3,127
  3,526
  3,950
  4,396
  4,866
  5,357
  5,871
  6,408
  6,967
  7,548
  8,153
  8,782
  9,436
  10,115
  10,821
  11,554
  12,317
  13,111
  13,937
  14,796
Working capital, $m
  886
  626
  797
  997
  1,227
  1,488
  1,781
  2,104
  2,459
  2,845
  3,260
  3,705
  4,179
  4,680
  5,209
  5,765
  6,348
  6,957
  7,593
  8,255
  8,944
  9,661
  10,406
  11,181
  11,986
  12,822
  13,691
  14,595
  15,535
  16,514
  17,532
Total debt, $m
  0
  125
  274
  449
  650
  878
  1,134
  1,417
  1,727
  2,064
  2,427
  2,815
  3,229
  3,667
  4,130
  4,616
  5,125
  5,657
  6,212
  6,791
  7,393
  8,020
  8,671
  9,347
  10,051
  10,781
  11,541
  12,331
  13,152
  14,007
  14,897
Total liabilities, $m
  422
  547
  696
  871
  1,072
  1,300
  1,556
  1,839
  2,149
  2,486
  2,849
  3,237
  3,651
  4,089
  4,552
  5,038
  5,547
  6,079
  6,634
  7,213
  7,815
  8,442
  9,093
  9,769
  10,473
  11,203
  11,963
  12,753
  13,574
  14,429
  15,319
Total equity, $m
  1,688
  1,668
  2,123
  2,656
  3,269
  3,964
  4,743
  5,605
  6,550
  7,577
  8,684
  9,869
  11,131
  12,467
  13,876
  15,357
  16,909
  18,532
  20,225
  21,989
  23,825
  25,735
  27,720
  29,783
  31,927
  34,155
  36,470
  38,878
  41,383
  43,989
  46,703
Total liabilities and equity, $m
  2,110
  2,215
  2,819
  3,527
  4,341
  5,264
  6,299
  7,444
  8,699
  10,063
  11,533
  13,106
  14,782
  16,556
  18,428
  20,395
  22,456
  24,611
  26,859
  29,202
  31,640
  34,177
  36,813
  39,552
  42,400
  45,358
  48,433
  51,631
  54,957
  58,418
  62,022
Debt-to-equity ratio
  0.000
  0.070
  0.130
  0.170
  0.200
  0.220
  0.240
  0.250
  0.260
  0.270
  0.280
  0.290
  0.290
  0.290
  0.300
  0.300
  0.300
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.320
  0.320
  0.320
  0.320
  0.320
  0.320
Adjusted equity ratio
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753
  0.753

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  146
  -153
  -196
  -248
  -307
  -373
  -449
  -532
  -623
  -722
  -830
  -935
  -1,057
  -1,187
  -1,324
  -1,468
  -1,618
  -1,776
  -1,940
  -2,112
  -2,290
  -2,476
  -2,669
  -2,869
  -3,078
  -3,294
  -3,519
  -3,753
  -3,997
  -4,250
  -4,514
Depreciation, amort., depletion, $m
  72
  62
  76
  93
  113
  135
  159
  187
  217
  249
  284
  313
  353
  395
  440
  487
  536
  587
  641
  697
  755
  815
  878
  944
  1,011
  1,082
  1,155
  1,232
  1,311
  1,394
  1,480
Funds from operations, $m
  4
  -91
  -120
  -154
  -194
  -239
  -289
  -345
  -406
  -473
  -545
  -622
  -705
  -792
  -884
  -981
  -1,083
  -1,189
  -1,300
  -1,415
  -1,535
  -1,660
  -1,791
  -1,926
  -2,066
  -2,212
  -2,364
  -2,522
  -2,686
  -2,856
  -3,034
Change in working capital, $m
  -170
  144
  171
  200
  230
  261
  292
  324
  355
  385
  416
  445
  474
  502
  529
  556
  583
  609
  636
  662
  689
  717
  745
  774
  805
  836
  869
  904
  940
  978
  1,019
Cash from operations, $m
  174
  -235
  -291
  -354
  -424
  -500
  -581
  -669
  -761
  -859
  -961
  -1,067
  -1,178
  -1,294
  -1,413
  -1,537
  -1,665
  -1,798
  -1,935
  -2,077
  -2,225
  -2,377
  -2,536
  -2,700
  -2,871
  -3,048
  -3,233
  -3,425
  -3,626
  -3,835
  -4,053
Maintenance CAPEX, $m
  0
  -41
  -53
  -67
  -84
  -104
  -126
  -150
  -178
  -208
  -240
  -275
  -313
  -353
  -395
  -440
  -487
  -536
  -587
  -641
  -697
  -755
  -815
  -878
  -944
  -1,011
  -1,082
  -1,155
  -1,232
  -1,311
  -1,394
New CAPEX, $m
  -157
  -122
  -144
  -169
  -194
  -220
  -247
  -273
  -299
  -325
  -351
  -375
  -400
  -423
  -446
  -469
  -492
  -514
  -536
  -559
  -582
  -605
  -629
  -654
  -679
  -706
  -734
  -763
  -793
  -826
  -860
Cash from investing activities, $m
  -160
  -163
  -197
  -236
  -278
  -324
  -373
  -423
  -477
  -533
  -591
  -650
  -713
  -776
  -841
  -909
  -979
  -1,050
  -1,123
  -1,200
  -1,279
  -1,360
  -1,444
  -1,532
  -1,623
  -1,717
  -1,816
  -1,918
  -2,025
  -2,137
  -2,254
Free cash flow, $m
  14
  -397
  -488
  -590
  -702
  -824
  -954
  -1,092
  -1,238
  -1,391
  -1,552
  -1,718
  -1,891
  -2,070
  -2,255
  -2,446
  -2,643
  -2,848
  -3,059
  -3,277
  -3,503
  -3,737
  -3,980
  -4,232
  -4,494
  -4,766
  -5,049
  -5,344
  -5,651
  -5,972
  -6,306
Issuance/(repayment) of debt, $m
  0
  125
  149
  175
  201
  228
  255
  283
  310
  337
  363
  389
  414
  438
  462
  486
  509
  532
  555
  579
  602
  626
  651
  677
  703
  731
  760
  790
  822
  855
  890
Issuance/(repurchase) of shares, $m
  48
  537
  652
  780
  920
  1,069
  1,227
  1,394
  1,568
  1,749
  1,936
  2,120
  2,319
  2,523
  2,733
  2,949
  3,170
  3,398
  3,633
  3,876
  4,126
  4,385
  4,654
  4,932
  5,221
  5,522
  5,835
  6,161
  6,501
  6,856
  7,227
Cash from financing (excl. dividends), $m  
  46
  662
  801
  955
  1,121
  1,297
  1,482
  1,677
  1,878
  2,086
  2,299
  2,509
  2,733
  2,961
  3,195
  3,435
  3,679
  3,930
  4,188
  4,455
  4,728
  5,011
  5,305
  5,609
  5,924
  6,253
  6,595
  6,951
  7,323
  7,711
  8,117
Total cash flow (excl. dividends), $m
  66
  265
  313
  365
  418
  473
  529
  585
  640
  695
  748
  791
  842
  892
  941
  989
  1,036
  1,083
  1,130
  1,177
  1,226
  1,275
  1,325
  1,377
  1,431
  1,487
  1,546
  1,607
  1,672
  1,740
  1,811
Retained Cash Flow (-), $m
  -342
  -537
  -652
  -780
  -920
  -1,069
  -1,227
  -1,394
  -1,568
  -1,749
  -1,936
  -2,120
  -2,319
  -2,523
  -2,733
  -2,949
  -3,170
  -3,398
  -3,633
  -3,876
  -4,126
  -4,385
  -4,654
  -4,932
  -5,221
  -5,522
  -5,835
  -6,161
  -6,501
  -6,856
  -7,227
Prev. year cash balance distribution, $m
 
  404
  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
 
  132
  -339
  -416
  -501
  -595
  -698
  -809
  -928
  -1,055
  -1,188
  -1,329
  -1,477
  -1,631
  -1,792
  -1,960
  -2,134
  -2,315
  -2,503
  -2,698
  -2,901
  -3,111
  -3,329
  -3,555
  -3,790
  -4,035
  -4,289
  -4,554
  -4,830
  -5,117
  -5,416
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  127
  -310
  -362
  -413
  -462
  -507
  -547
  -580
  -606
  -623
  -631
  -630
  -620
  -602
  -575
  -542
  -504
  -461
  -415
  -369
  -322
  -276
  -233
  -193
  -157
  -125
  -98
  -75
  -56
  -41
Current shareholders' claim on cash, %
  100
  72.9
  54.2
  40.8
  31.2
  24.2
  19.0
  15.1
  12.1
  9.8
  8.0
  6.5
  5.4
  4.5
  3.8
  3.2
  2.7
  2.3
  1.9
  1.7
  1.4
  1.2
  1.1
  0.9
  0.8
  0.7
  0.6
  0.5
  0.4
  0.4
  0.3

Grupo Simec, S.A.B. de C.V. produces, processes, and sells special bar quality steels and commercial steel products in Mexico, the United States, and internationally. The company’s products include large diameter pipe products, structural shapes, merchant shapes, and rebars. It serves automotive, aerospace, manufacturing, and petroleum and gas industries, as well as construction sectors. The company sells its products through service and distribution centers. Grupo Simec, S.A.B. de C.V. was founded in 1969 and is headquartered in Guadalajara, Mexico. Grupo Simec, S.A.B. de C.V. is a subsidiary of Industrias CH, S. A. B. de C. V.

FINANCIAL RATIOS  of  Grupo Simec ADR (SIM)

Valuation Ratios
P/E Ratio 39.4
Price to Sales 4.1
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 33.1
Price to Free Cash Flow 338.4
Growth Rates
Sales Growth Rate 12.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 375.8%
Cap. Spend. - 3 Yr. Gr. Rate -0.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 135
Management Effectiveness
Return On Assets 7.9%
Ret/ On Assets - 3 Yr. Avg. 2.7%
Return On Total Capital 9.6%
Ret/ On T. Cap. - 3 Yr. Avg. 3.2%
Return On Equity 9.6%
Return On Equity - 3 Yr. Avg. 3.2%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 17.2%
Gross Margin - 3 Yr. Avg. 9.3%
EBITDA Margin 24.5%
EBITDA Margin - 3 Yr. Avg. 8.8%
Operating Margin 12.4%
Oper. Margin - 3 Yr. Avg. 1.5%
Pre-Tax Margin 19.2%
Pre-Tax Margin - 3 Yr. Avg. 3.8%
Net Profit Margin 10.5%
Net Profit Margin - 3 Yr. Avg. 3.3%
Effective Tax Rate 17.6%
Eff/ Tax Rate - 3 Yr. Avg. 3.4%
Payout Ratio 0%

SIM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SIM stock intrinsic value calculation we used $1394 million for the last fiscal year's total revenue generated by Grupo Simec ADR. The default revenue input number comes from 2016 income statement of Grupo Simec 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 SIM stock valuation model: a) initial revenue growth rate of 29.8% 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 4.3%, whose default value for SIM is calculated based on our internal credit rating of Grupo Simec 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 Grupo Simec 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 SIM stock the variable cost ratio is equal to 108.6%.

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 SIM 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 Grupo Simec ADR.

Corporate tax rate of 27% is the nominal tax rate for Grupo Simec 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 SIM 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 SIM are equal to 29.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Grupo Simec 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 SIM is equal to 34.6%. 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 - $1688 million for Grupo Simec 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 164.514 million for Grupo Simec 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 Grupo Simec ADR at the current share price and the inputted number of shares is $1.9 billion.

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COMPANY NEWS

▶ Grupo Simec posts 2Q profit   [Jul-20-17 10:33PM  Associated Press]
▶ Business Confidence in Mexico Is Recovering   [May-26-17 01:35PM  Market Realist]
▶ John Mack Weighs in on Financial Technology   [Apr-20-17 07:38AM  Market Realist]
▶ Grupo Simec Files Amended 6-K   [Feb-27-17 04:34PM  PR Newswire]
▶ 5 Great Emerging Market Picks for 2017   [Jan-03-17 01:12PM  Zacks]
▶ U.S. Steel (X) Huge Q2 Earnings Beat   [Jul-30  07:27AM  Zacks]
▶ Mechel (MTL) in Focus: Stock Tumbles 8.5%   [Jul-11  06:57AM  Zacks]
▶ ArcelorMittal Issues EUR600M Notes   [Jul-07  05:45PM  Zacks]
▶ AK Steel Leveraging Strong Automotive Trends   [Jun-30  12:20PM  Zacks]
▶ AK Steel Unveils Q2 Outlook   [Jun-20  05:20PM  Zacks]
Stock chart of SIM Financial statements of SIM
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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