Intrinsic value of Syngenta ADR - SYT

Previous Close

$92.15

  Intrinsic Value

$33.64

stock screener

  Rating & Target

str. sell

-63%

  Value-price divergence*

-22%

Previous close

$92.15

 
Intrinsic value

$33.64

 
Up/down potential

-63%

 
Rating

str. sell

 
Value-price divergence*

-22%

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

We calculate the intrinsic value of SYT 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 42.7

 

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, %
  -4.63
  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
  12,790
  13,046
  13,346
  13,689
  14,074
  14,501
  14,969
  15,479
  16,030
  16,625
  17,263
  17,945
  18,674
  19,449
  20,273
  21,148
  22,075
  23,056
  24,093
  25,189
  26,347
  27,568
  28,856
  30,213
  31,644
  33,150
  34,736
  36,406
  38,163
  40,011
  41,955
Variable operating expenses, $m
 
  8,972
  9,175
  9,406
  9,667
  9,955
  10,271
  10,615
  10,988
  11,389
  11,820
  12,118
  12,610
  13,134
  13,690
  14,281
  14,907
  15,569
  16,270
  17,010
  17,791
  18,616
  19,486
  20,402
  21,368
  22,386
  23,457
  24,584
  25,770
  27,018
  28,331
Fixed operating expenses, $m
 
  2,468
  2,530
  2,593
  2,658
  2,724
  2,793
  2,862
  2,934
  3,007
  3,082
  3,160
  3,238
  3,319
  3,402
  3,488
  3,575
  3,664
  3,756
  3,850
  3,946
  4,044
  4,146
  4,249
  4,355
  4,464
  4,576
  4,690
  4,808
  4,928
  5,051
Total operating expenses, $m
  11,143
  11,440
  11,705
  11,999
  12,325
  12,679
  13,064
  13,477
  13,922
  14,396
  14,902
  15,278
  15,848
  16,453
  17,092
  17,769
  18,482
  19,233
  20,026
  20,860
  21,737
  22,660
  23,632
  24,651
  25,723
  26,850
  28,033
  29,274
  30,578
  31,946
  33,382
Operating income, $m
  1,647
  1,605
  1,641
  1,689
  1,749
  1,822
  1,905
  2,001
  2,109
  2,228
  2,360
  2,668
  2,825
  2,996
  3,181
  3,380
  3,593
  3,823
  4,068
  4,330
  4,610
  4,907
  5,225
  5,562
  5,920
  6,300
  6,704
  7,131
  7,585
  8,065
  8,573
EBITDA, $m
  2,309
  2,243
  2,290
  2,350
  2,424
  2,512
  2,613
  2,727
  2,855
  2,996
  3,152
  3,321
  3,505
  3,704
  3,919
  4,149
  4,397
  4,662
  4,945
  5,247
  5,569
  5,911
  6,275
  6,662
  7,072
  7,507
  7,968
  8,457
  8,974
  9,521
  10,100
Interest expense (income), $m
  179
  140
  150
  162
  176
  191
  208
  226
  247
  268
  292
  317
  344
  373
  404
  437
  471
  508
  547
  588
  632
  678
  726
  777
  831
  888
  947
  1,010
  1,077
  1,146
  1,220
Earnings before tax, $m
  1,361
  1,465
  1,491
  1,527
  1,574
  1,631
  1,698
  1,775
  1,862
  1,960
  2,068
  2,350
  2,481
  2,623
  2,777
  2,943
  3,122
  3,314
  3,521
  3,742
  3,978
  4,230
  4,498
  4,785
  5,089
  5,413
  5,756
  6,121
  6,508
  6,918
  7,353
Tax expense, $m
  180
  396
  403
  412
  425
  440
  458
  479
  503
  529
  558
  635
  670
  708
  750
  795
  843
  895
  951
  1,010
  1,074
  1,142
  1,215
  1,292
  1,374
  1,461
  1,554
  1,653
  1,757
  1,868
  1,985
Net income, $m
  1,178
  1,070
  1,088
  1,115
  1,149
  1,190
  1,239
  1,296
  1,359
  1,431
  1,510
  1,716
  1,811
  1,915
  2,027
  2,148
  2,279
  2,420
  2,570
  2,731
  2,904
  3,088
  3,284
  3,493
  3,715
  3,951
  4,202
  4,468
  4,751
  5,050
  5,368

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,284
  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
  19,068
  18,144
  18,562
  19,039
  19,574
  20,168
  20,819
  21,528
  22,295
  23,122
  24,010
  24,959
  25,972
  27,050
  28,197
  29,413
  30,702
  32,066
  33,509
  35,034
  36,644
  38,342
  40,133
  42,021
  44,011
  46,106
  48,312
  50,634
  53,077
  55,648
  58,352
Adjusted assets (=assets-cash), $m
  17,784
  18,144
  18,562
  19,039
  19,574
  20,168
  20,819
  21,528
  22,295
  23,122
  24,010
  24,959
  25,972
  27,050
  28,197
  29,413
  30,702
  32,066
  33,509
  35,034
  36,644
  38,342
  40,133
  42,021
  44,011
  46,106
  48,312
  50,634
  53,077
  55,648
  58,352
Revenue / Adjusted assets
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
Average production assets, $m
  4,659
  4,749
  4,858
  4,983
  5,123
  5,278
  5,449
  5,634
  5,835
  6,051
  6,284
  6,532
  6,797
  7,080
  7,380
  7,698
  8,035
  8,392
  8,770
  9,169
  9,590
  10,035
  10,504
  10,998
  11,518
  12,067
  12,644
  13,252
  13,891
  14,564
  15,272
Working capital, $m
  5,089
  4,657
  4,764
  4,887
  5,024
  5,177
  5,344
  5,526
  5,723
  5,935
  6,163
  6,407
  6,667
  6,943
  7,238
  7,550
  7,881
  8,231
  8,601
  8,993
  9,406
  9,842
  10,302
  10,786
  11,297
  11,835
  12,401
  12,997
  13,624
  14,284
  14,978
Total debt, $m
  3,621
  3,063
  3,306
  3,584
  3,895
  4,241
  4,620
  5,032
  5,479
  5,960
  6,477
  7,029
  7,619
  8,246
  8,913
  9,621
  10,372
  11,166
  12,005
  12,893
  13,830
  14,818
  15,861
  16,959
  18,117
  19,337
  20,621
  21,972
  23,394
  24,890
  26,464
Total liabilities, $m
  11,118
  10,560
  10,803
  11,081
  11,392
  11,738
  12,117
  12,529
  12,976
  13,457
  13,974
  14,526
  15,116
  15,743
  16,410
  17,118
  17,869
  18,663
  19,502
  20,390
  21,327
  22,315
  23,358
  24,456
  25,614
  26,834
  28,118
  29,469
  30,891
  32,387
  33,961
Total equity, $m
  7,950
  7,584
  7,759
  7,958
  8,182
  8,430
  8,702
  8,999
  9,319
  9,665
  10,036
  10,433
  10,856
  11,307
  11,786
  12,295
  12,833
  13,404
  14,007
  14,644
  15,317
  16,027
  16,776
  17,565
  18,396
  19,272
  20,194
  21,165
  22,186
  23,261
  24,391
Total liabilities and equity, $m
  19,068
  18,144
  18,562
  19,039
  19,574
  20,168
  20,819
  21,528
  22,295
  23,122
  24,010
  24,959
  25,972
  27,050
  28,196
  29,413
  30,702
  32,067
  33,509
  35,034
  36,644
  38,342
  40,134
  42,021
  44,010
  46,106
  48,312
  50,634
  53,077
  55,648
  58,352
Debt-to-equity ratio
  0.455
  0.400
  0.430
  0.450
  0.480
  0.500
  0.530
  0.560
  0.590
  0.620
  0.650
  0.670
  0.700
  0.730
  0.760
  0.780
  0.810
  0.830
  0.860
  0.880
  0.900
  0.920
  0.950
  0.970
  0.980
  1.000
  1.020
  1.040
  1.050
  1.070
  1.080
Adjusted equity ratio
  0.382
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,178
  1,070
  1,088
  1,115
  1,149
  1,190
  1,239
  1,296
  1,359
  1,431
  1,510
  1,716
  1,811
  1,915
  2,027
  2,148
  2,279
  2,420
  2,570
  2,731
  2,904
  3,088
  3,284
  3,493
  3,715
  3,951
  4,202
  4,468
  4,751
  5,050
  5,368
Depreciation, amort., depletion, $m
  662
  638
  648
  661
  675
  691
  708
  726
  746
  768
  791
  653
  680
  708
  738
  770
  804
  839
  877
  917
  959
  1,003
  1,050
  1,100
  1,152
  1,207
  1,264
  1,325
  1,389
  1,456
  1,527
Funds from operations, $m
  1,231
  1,707
  1,737
  1,776
  1,824
  1,881
  1,947
  2,022
  2,106
  2,199
  2,301
  2,369
  2,491
  2,623
  2,765
  2,918
  3,083
  3,259
  3,447
  3,648
  3,863
  4,091
  4,334
  4,593
  4,867
  5,158
  5,466
  5,794
  6,140
  6,507
  6,895
Change in working capital, $m
  -576
  91
  107
  122
  137
  152
  167
  182
  197
  212
  228
  244
  260
  277
  294
  312
  331
  350
  370
  391
  413
  436
  460
  485
  511
  538
  566
  596
  627
  660
  694
Cash from operations, $m
  1,807
  1,616
  1,630
  1,653
  1,686
  1,729
  1,780
  1,840
  1,909
  1,986
  2,073
  2,125
  2,231
  2,346
  2,471
  2,606
  2,752
  2,909
  3,077
  3,257
  3,450
  3,655
  3,874
  4,108
  4,356
  4,620
  4,900
  5,198
  5,513
  5,847
  6,201
Maintenance CAPEX, $m
  0
  -466
  -475
  -486
  -498
  -512
  -528
  -545
  -563
  -584
  -605
  -628
  -653
  -680
  -708
  -738
  -770
  -804
  -839
  -877
  -917
  -959
  -1,003
  -1,050
  -1,100
  -1,152
  -1,207
  -1,264
  -1,325
  -1,389
  -1,456
New CAPEX, $m
  -557
  -90
  -109
  -125
  -140
  -155
  -170
  -186
  -201
  -216
  -232
  -248
  -265
  -282
  -300
  -318
  -337
  -357
  -378
  -399
  -421
  -445
  -469
  -494
  -521
  -548
  -577
  -608
  -639
  -673
  -708
Cash from investing activities, $m
  -521
  -556
  -584
  -611
  -638
  -667
  -698
  -731
  -764
  -800
  -837
  -876
  -918
  -962
  -1,008
  -1,056
  -1,107
  -1,161
  -1,217
  -1,276
  -1,338
  -1,404
  -1,472
  -1,544
  -1,621
  -1,700
  -1,784
  -1,872
  -1,964
  -2,062
  -2,164
Free cash flow, $m
  1,286
  1,060
  1,046
  1,043
  1,048
  1,061
  1,081
  1,109
  1,144
  1,187
  1,236
  1,249
  1,312
  1,384
  1,463
  1,550
  1,645
  1,748
  1,860
  1,981
  2,111
  2,252
  2,402
  2,563
  2,736
  2,920
  3,116
  3,325
  3,548
  3,785
  4,037
Issuance/(repayment) of debt, $m
  -186
  209
  243
  278
  312
  345
  379
  413
  447
  481
  516
  553
  590
  628
  667
  708
  750
  794
  840
  887
  937
  989
  1,043
  1,099
  1,158
  1,219
  1,284
  1,351
  1,422
  1,496
  1,574
Issuance/(repurchase) of shares, $m
  92
  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  
  -94
  209
  243
  278
  312
  345
  379
  413
  447
  481
  516
  553
  590
  628
  667
  708
  750
  794
  840
  887
  937
  989
  1,043
  1,099
  1,158
  1,219
  1,284
  1,351
  1,422
  1,496
  1,574
Total cash flow (excl. dividends), $m
  1,183
  1,270
  1,289
  1,320
  1,360
  1,406
  1,460
  1,522
  1,591
  1,668
  1,752
  1,801
  1,902
  2,011
  2,130
  2,258
  2,395
  2,542
  2,700
  2,868
  3,048
  3,240
  3,445
  3,662
  3,894
  4,139
  4,400
  4,677
  4,970
  5,281
  5,610
Retained Cash Flow (-), $m
  451
  -151
  -174
  -199
  -224
  -248
  -272
  -296
  -321
  -346
  -371
  -397
  -423
  -451
  -479
  -508
  -539
  -570
  -603
  -637
  -673
  -710
  -749
  -789
  -832
  -876
  -922
  -971
  -1,021
  -1,074
  -1,130
Prev. year cash balance distribution, $m
 
  517
  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
 
  1,635
  1,114
  1,121
  1,136
  1,158
  1,188
  1,226
  1,270
  1,322
  1,381
  1,404
  1,479
  1,561
  1,651
  1,749
  1,856
  1,972
  2,097
  2,231
  2,375
  2,530
  2,696
  2,873
  3,062
  3,263
  3,478
  3,706
  3,949
  4,207
  4,480
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
 
  1,568
  1,020
  976
  935
  898
  862
  828
  794
  759
  724
  667
  631
  593
  554
  514
  472
  429
  386
  344
  302
  262
  224
  188
  156
  127
  101
  80
  61
  46
  34
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

Syngenta AG, an agribusiness company, engages in the discovery, development, manufacture, and marketing of a range of products designed to enhance crop yields and food quality worldwide. The company offers herbicides principally for corn, cereals, soybean, and rice; fungicides, primarily for corn, cereals, fruits, grapes, rice, soybean, and vegetables; insecticides for fruits, vegetables, and field crops; and seed care for corn, soybean, cereals, oilseeds, and cotton. It also develops, produces, and markets seeds and plants through using genetics and related technologies, which comprise approximately 200 product lines and 5,000 varieties of proprietary genetics, including field crops, such as corn, soybean, rice, cereals, oilseeds and sugar beet, and vegetables. In addition, the company offers consumer home and garden products covering fungicides, herbicides, and insecticides to wholesale companies for repackaging and sale to retailers; pesticides for turf, landscape, and professional pest management applications; and disease, insect and weed control, and turf grass growth regulators to clients comprising professional golf superintendents, green keepers, sports turf managers and professional lawn care operators working on recreational sites, and residential and commercial landscapes. Further, it provides ornamental flowers for growers of ornamentals, and pot and bedding plants, as well as bulbs and cut flowers with a range of chemical and biological crop protection solutions; and supplies seeds, cuttings, and young plants to distributors, growers, and retailers serving the pot and bedding plant markets. The company sells its products through specialized distributors, dealers, and professional applicators, as well as directly to growers. Syngenta AG was founded in 1999 and is headquartered in Basel, Switzerland.

FINANCIAL RATIOS  of  Syngenta ADR (SYT)

Valuation Ratios
P/E Ratio 36.1
Price to Sales 3.3
Price to Book 5.3
Price to Tangible Book
Price to Cash Flow 23.5
Price to Free Cash Flow 34
Growth Rates
Sales Growth Rate -4.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2.6%
Cap. Spend. - 3 Yr. Gr. Rate -4.5%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 35.9%
Total Debt to Equity 45.5%
Interest Coverage 9
Management Effectiveness
Return On Assets 7%
Ret/ On Assets - 3 Yr. Avg. 7.3%
Return On Total Capital 9.9%
Ret/ On T. Cap. - 3 Yr. Avg. 11.1%
Return On Equity 14.4%
Return On Equity - 3 Yr. Avg. 15.8%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 49.2%
Gross Margin - 3 Yr. Avg. 47.5%
EBITDA Margin 17.2%
EBITDA Margin - 3 Yr. Avg. 16.8%
Operating Margin 12.9%
Oper. Margin - 3 Yr. Avg. 13.5%
Pre-Tax Margin 10.6%
Pre-Tax Margin - 3 Yr. Avg. 11.7%
Net Profit Margin 9.2%
Net Profit Margin - 3 Yr. Avg. 10%
Effective Tax Rate 13.2%
Eff/ Tax Rate - 3 Yr. Avg. 14.4%
Payout Ratio 88.3%

SYT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SYT stock intrinsic value calculation we used $12790 million for the last fiscal year's total revenue generated by Syngenta ADR. The default revenue input number comes from 2016 income statement of Syngenta 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 SYT 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 4.3%, whose default value for SYT is calculated based on our internal credit rating of Syngenta 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 Syngenta 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 SYT stock the variable cost ratio is equal to 68.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2408 million in the base year in the intrinsic value calculation for SYT 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 4.9% for Syngenta ADR.

Corporate tax rate of 27% is the nominal tax rate for Syngenta 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 SYT 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 SYT are equal to 36.4%.

Life of production assets of 10 years is the average useful life of capital assets used in Syngenta 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 SYT is equal to 35.7%. 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 - $7950 million for Syngenta 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 463.895 million for Syngenta 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 Syngenta ADR at the current share price and the inputted number of shares is $42.7 billion.

RELATED COMPANIES Price Int.Val. Rating
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FMC FMC 84.74 2.73  str.sell
DOW Dow Chemical 63.94 208.93  str.buy
AVD American Vangu 19.80 2.50  str.sell

COMPANY NEWS

▶ ETFs with exposure to Syngenta AG : August 11, 2017   [Aug-11-17 06:44PM  Capital Cube]
▶ Syngenta Licenses Enlist Events   [Aug-07-17 06:30AM  Business Wire]
▶ Syngenta 2017 Half Year Results   [01:00AM  Business Wire]
▶ Developer pushes agtech 'mega campus' forward in Research Triangle Park   [Jul-17-17 12:35PM  American City Business Journals]
▶ Cotton Continues to Move Lower This Week   [Jul-13-17 10:15AM  Market Realist]
▶ Syngenta Management Announcement   [Jul-05-17 01:00AM  Business Wire]
▶ Who are Monsanto's main competitors?   [Jun-27-17 10:39AM  Investopedia]
▶ Syngenta Looks to the Future   [07:30AM  Business Wire]
▶ Kansas jury awards $218M to farmers in Syngenta GMO suit   [Jun-23-17 02:47PM  Associated Press]
▶ KC law firm wins $218M verdict against agribusiness company   [01:45PM  American City Business Journals]
▶ Your Soybean Price Update for June 2017   [Jun-15-17 06:05PM  Market Realist]
▶ [$$] China approves imports of new US-developed GM crops   [Jun-14-17 05:15PM  Financial Times]
▶ 11 Best Food Company Stocks To Buy Now   [12:19PM  Insider Monkey]
▶ Business Highlights   [Jun-09-17 05:46PM  Associated Press]
▶ 1st farmer lawsuit begins against Syngenta over China trade   [Jun-06-17 05:12PM  Associated Press]
▶ 1st farmer lawsuit on deck against Syngenta over China trade   [Jun-05-17 07:19AM  Associated Press]
▶ Syngenta's CEO on ChemChina, M&A, Asia Expansion   [Jun-02-17 04:44AM  Bloomberg]
▶ [$$] ChemChina secures $20bn to pay for Syngenta   [May-25-17 07:28AM  Financial Times]
▶ On a Jet Plane: Global Week Ahead   [May-15-17 09:18AM  Zacks]
▶ New Strong Buys at New Highs Breaking Out Today   [May-11-17 05:57PM  Zacks]
▶ [$$] PPG/Akzo Nobel: mending fences   [May-08-17 12:18PM  Financial Times]
▶ Syngenta Shareholders Accept ChemChina Offer   [01:00AM  Business Wire]
▶ Syngenta's board of directors gets a shake-up   [Apr-26-17 12:25PM  American City Business Journals]
▶ 1st farmer lawsuit on deck against Syngenta over China trade   [Apr-23-17 03:30PM  Associated Press]
▶ 3 Top Agriculture Stocks to Buy in 2017   [Apr-15-17 09:36AM  Motley Fool]
▶ ChemChina, Syngenta Deal on Track for May Closure   [Apr-13-17 12:04PM  TheStreet.com]
▶ ChemChina's takeover of Syngenta a step closer to being finalized   [Apr-12-17 02:14PM  American City Business Journals]
▶ [$$] ChemChina Takeover of Syngenta Clears Another Hurdle   [10:43AM  The Wall Street Journal]
▶ The Monsanto-Bayer Merger: Can This Seed Take Root?   [Apr-07-17 09:06AM  Market Realist]
Stock chart of SYT Financial statements of SYT
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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