Intrinsic value of Adecoagro - AGRO

Previous Close

$10.37

  Intrinsic Value

$108.07

stock screener

  Rating & Target

str. buy

+942%

Previous close

$10.37

 
Intrinsic value

$108.07

 
Up/down potential

+942%

 
Rating

str. buy

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

We calculate the intrinsic value of AGRO 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 1.3

 

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, %
  25.25
  39.80
  36.32
  33.19
  30.37
  27.83
  25.55
  23.49
  21.64
  19.98
  18.48
  17.13
  15.92
  14.83
  13.85
  12.96
  12.17
  11.45
  10.80
  10.22
  9.70
  9.23
  8.81
  8.43
  8.08
  7.78
  7.50
  7.25
  7.02
  6.82
  6.64
Revenue, $m
  863
  1,206
  1,645
  2,190
  2,856
  3,651
  4,583
  5,660
  6,885
  8,261
  9,788
  11,465
  13,290
  15,260
  17,373
  19,625
  22,013
  24,533
  27,183
  29,962
  32,869
  35,903
  39,065
  42,357
  45,781
  49,341
  53,041
  56,886
  60,881
  65,034
  69,352
Variable operating expenses, $m
 
  686
  935
  1,244
  1,622
  2,073
  2,602
  3,213
  3,909
  4,689
  5,556
  6,506
  7,542
  8,660
  9,859
  11,137
  12,492
  13,922
  15,426
  17,003
  18,653
  20,375
  22,169
  24,037
  25,981
  28,001
  30,100
  32,282
  34,550
  36,906
  39,357
Fixed operating expenses, $m
 
  212
  217
  223
  228
  234
  240
  246
  252
  259
  265
  272
  278
  285
  292
  300
  307
  315
  323
  331
  339
  348
  356
  365
  374
  384
  393
  403
  413
  424
  434
Total operating expenses, $m
  693
  898
  1,152
  1,467
  1,850
  2,307
  2,842
  3,459
  4,161
  4,948
  5,821
  6,778
  7,820
  8,945
  10,151
  11,437
  12,799
  14,237
  15,749
  17,334
  18,992
  20,723
  22,525
  24,402
  26,355
  28,385
  30,493
  32,685
  34,963
  37,330
  39,791
Operating income, $m
  171
  308
  493
  723
  1,005
  1,343
  1,741
  2,201
  2,724
  3,313
  3,967
  4,687
  5,470
  6,315
  7,222
  8,188
  9,213
  10,296
  11,434
  12,628
  13,877
  15,181
  16,540
  17,954
  19,426
  20,957
  22,547
  24,200
  25,918
  27,704
  29,561
EBITDA, $m
  299
  467
  708
  1,010
  1,378
  1,820
  2,339
  2,939
  3,622
  4,390
  5,243
  6,180
  7,200
  8,302
  9,484
  10,743
  12,079
  13,490
  14,973
  16,529
  18,156
  19,855
  21,626
  23,469
  25,387
  27,381
  29,453
  31,607
  33,845
  36,171
  38,590
Interest expense (income), $m
  48
  34
  52
  75
  103
  138
  179
  228
  284
  348
  419
  499
  586
  681
  784
  894
  1,011
  1,136
  1,267
  1,405
  1,550
  1,701
  1,859
  2,024
  2,196
  2,374
  2,560
  2,752
  2,953
  3,161
  3,377
Earnings before tax, $m
  13
  275
  441
  649
  902
  1,206
  1,562
  1,973
  2,441
  2,965
  3,548
  4,188
  4,883
  5,634
  6,438
  7,294
  8,202
  9,160
  10,167
  11,223
  12,327
  13,479
  14,680
  15,930
  17,231
  18,582
  19,988
  21,448
  22,965
  24,543
  26,184
Tax expense, $m
  9
  74
  119
  175
  244
  326
  422
  533
  659
  801
  958
  1,131
  1,319
  1,521
  1,738
  1,969
  2,215
  2,473
  2,745
  3,030
  3,328
  3,639
  3,964
  4,301
  4,652
  5,017
  5,397
  5,791
  6,201
  6,627
  7,070
Net income, $m
  2
  200
  322
  474
  659
  880
  1,140
  1,440
  1,782
  2,165
  2,590
  3,057
  3,565
  4,113
  4,699
  5,325
  5,987
  6,687
  7,422
  8,193
  8,999
  9,840
  10,716
  11,629
  12,578
  13,565
  14,591
  15,657
  16,765
  17,916
  19,114

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  159
  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
  1,456
  1,814
  2,473
  3,294
  4,294
  5,490
  6,892
  8,511
  10,354
  12,422
  14,718
  17,240
  19,985
  22,948
  26,125
  29,512
  33,102
  36,891
  40,877
  45,056
  49,427
  53,989
  58,744
  63,695
  68,844
  74,197
  79,761
  85,542
  91,550
  97,795
  104,288
Adjusted assets (=assets-cash), $m
  1,297
  1,814
  2,473
  3,294
  4,294
  5,490
  6,892
  8,511
  10,354
  12,422
  14,718
  17,240
  19,985
  22,948
  26,125
  29,512
  33,102
  36,891
  40,877
  45,056
  49,427
  53,989
  58,744
  63,695
  68,844
  74,197
  79,761
  85,542
  91,550
  97,795
  104,288
Revenue / Adjusted assets
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
Average production assets, $m
  562
  785
  1,071
  1,426
  1,859
  2,377
  2,984
  3,685
  4,482
  5,378
  6,372
  7,463
  8,652
  9,935
  11,310
  12,776
  14,330
  15,971
  17,696
  19,505
  21,398
  23,373
  25,431
  27,574
  29,804
  32,121
  34,530
  37,033
  39,634
  42,337
  45,148
Working capital, $m
  236
  395
  538
  716
  934
  1,194
  1,499
  1,851
  2,251
  2,701
  3,201
  3,749
  4,346
  4,990
  5,681
  6,417
  7,198
  8,022
  8,889
  9,798
  10,748
  11,740
  12,774
  13,851
  14,970
  16,135
  17,344
  18,602
  19,908
  21,266
  22,678
Total debt, $m
  635
  728
  1,050
  1,450
  1,939
  2,522
  3,206
  3,997
  4,896
  5,905
  7,025
  8,256
  9,596
  11,042
  12,592
  14,245
  15,997
  17,846
  19,791
  21,830
  23,963
  26,190
  28,510
  30,926
  33,439
  36,051
  38,766
  41,588
  44,520
  47,567
  50,736
Total liabilities, $m
  792
  885
  1,207
  1,607
  2,096
  2,679
  3,363
  4,154
  5,053
  6,062
  7,182
  8,413
  9,753
  11,199
  12,749
  14,402
  16,154
  18,003
  19,948
  21,987
  24,120
  26,347
  28,667
  31,083
  33,596
  36,208
  38,923
  41,745
  44,677
  47,724
  50,893
Total equity, $m
  664
  929
  1,266
  1,687
  2,199
  2,811
  3,529
  4,358
  5,301
  6,360
  7,536
  8,827
  10,232
  11,749
  13,376
  15,110
  16,948
  18,888
  20,929
  23,069
  25,306
  27,642
  30,077
  32,612
  35,248
  37,989
  40,838
  43,798
  46,874
  50,071
  53,396
Total liabilities and equity, $m
  1,456
  1,814
  2,473
  3,294
  4,295
  5,490
  6,892
  8,512
  10,354
  12,422
  14,718
  17,240
  19,985
  22,948
  26,125
  29,512
  33,102
  36,891
  40,877
  45,056
  49,426
  53,989
  58,744
  63,695
  68,844
  74,197
  79,761
  85,543
  91,551
  97,795
  104,289
Debt-to-equity ratio
  0.956
  0.780
  0.830
  0.860
  0.880
  0.900
  0.910
  0.920
  0.920
  0.930
  0.930
  0.940
  0.940
  0.940
  0.940
  0.940
  0.940
  0.940
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
Adjusted equity ratio
  0.389
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2
  200
  322
  474
  659
  880
  1,140
  1,440
  1,782
  2,165
  2,590
  3,057
  3,565
  4,113
  4,699
  5,325
  5,987
  6,687
  7,422
  8,193
  8,999
  9,840
  10,716
  11,629
  12,578
  13,565
  14,591
  15,657
  16,765
  17,916
  19,114
Depreciation, amort., depletion, $m
  128
  158
  215
  287
  373
  477
  598
  738
  898
  1,077
  1,276
  1,493
  1,730
  1,987
  2,262
  2,555
  2,866
  3,194
  3,539
  3,901
  4,280
  4,675
  5,086
  5,515
  5,961
  6,424
  6,906
  7,407
  7,927
  8,467
  9,030
Funds from operations, $m
  202
  359
  537
  760
  1,032
  1,357
  1,738
  2,179
  2,679
  3,242
  3,865
  4,550
  5,295
  6,099
  6,962
  7,880
  8,853
  9,881
  10,961
  12,094
  13,278
  14,514
  15,803
  17,144
  18,539
  19,989
  21,497
  23,063
  24,691
  26,384
  28,144
Change in working capital, $m
  -53
  112
  143
  178
  218
  260
  305
  352
  401
  450
  499
  548
  597
  644
  691
  736
  781
  824
  867
  909
  950
  992
  1,034
  1,076
  1,120
  1,164
  1,210
  1,257
  1,307
  1,358
  1,412
Cash from operations, $m
  255
  246
  394
  582
  814
  1,097
  1,433
  1,826
  2,279
  2,792
  3,366
  4,002
  4,698
  5,455
  6,271
  7,144
  8,073
  9,057
  10,094
  11,185
  12,328
  13,522
  14,769
  16,067
  17,419
  18,825
  20,287
  21,806
  23,385
  25,026
  26,732
Maintenance CAPEX, $m
  0
  -112
  -157
  -214
  -285
  -372
  -475
  -597
  -737
  -896
  -1,076
  -1,274
  -1,493
  -1,730
  -1,987
  -2,262
  -2,555
  -2,866
  -3,194
  -3,539
  -3,901
  -4,280
  -4,675
  -5,086
  -5,515
  -5,961
  -6,424
  -6,906
  -7,407
  -7,927
  -8,467
New CAPEX, $m
  -135
  -223
  -285
  -355
  -433
  -517
  -607
  -701
  -798
  -896
  -994
  -1,092
  -1,188
  -1,283
  -1,376
  -1,466
  -1,554
  -1,641
  -1,725
  -1,809
  -1,892
  -1,975
  -2,059
  -2,143
  -2,229
  -2,317
  -2,409
  -2,503
  -2,601
  -2,704
  -2,811
Cash from investing activities, $m
  -122
  -335
  -442
  -569
  -718
  -889
  -1,082
  -1,298
  -1,535
  -1,792
  -2,070
  -2,366
  -2,681
  -3,013
  -3,363
  -3,728
  -4,109
  -4,507
  -4,919
  -5,348
  -5,793
  -6,255
  -6,734
  -7,229
  -7,744
  -8,278
  -8,833
  -9,409
  -10,008
  -10,631
  -11,278
Free cash flow, $m
  133
  -89
  -48
  12
  96
  208
  351
  529
  744
  1,000
  1,297
  1,636
  2,017
  2,442
  2,908
  3,416
  3,963
  4,550
  5,175
  5,837
  6,534
  7,267
  8,035
  8,838
  9,675
  10,547
  11,454
  12,397
  13,377
  14,396
  15,453
Issuance/(repayment) of debt, $m
  -125
  252
  322
  401
  488
  583
  684
  790
  899
  1,010
  1,120
  1,231
  1,339
  1,446
  1,551
  1,652
  1,752
  1,849
  1,945
  2,039
  2,133
  2,227
  2,321
  2,416
  2,513
  2,612
  2,715
  2,821
  2,932
  3,048
  3,168
Issuance/(repurchase) of shares, $m
  0
  64
  16
  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  
  -182
  316
  338
  401
  488
  583
  684
  790
  899
  1,010
  1,120
  1,231
  1,339
  1,446
  1,551
  1,652
  1,752
  1,849
  1,945
  2,039
  2,133
  2,227
  2,321
  2,416
  2,513
  2,612
  2,715
  2,821
  2,932
  3,048
  3,168
Total cash flow (excl. dividends), $m
  -40
  227
  289
  413
  584
  791
  1,035
  1,319
  1,643
  2,009
  2,417
  2,866
  3,357
  3,888
  4,459
  5,068
  5,715
  6,399
  7,120
  7,876
  8,667
  9,494
  10,356
  11,254
  12,188
  13,159
  14,169
  15,219
  16,309
  17,443
  18,622
Retained Cash Flow (-), $m
  -144
  -265
  -337
  -420
  -512
  -612
  -718
  -829
  -943
  -1,059
  -1,176
  -1,291
  -1,405
  -1,517
  -1,627
  -1,734
  -1,838
  -1,940
  -2,041
  -2,140
  -2,238
  -2,336
  -2,435
  -2,535
  -2,636
  -2,741
  -2,849
  -2,960
  -3,076
  -3,197
  -3,324
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
 
  -37
  -49
  -8
  72
  179
  317
  490
  700
  950
  1,242
  1,575
  1,952
  2,371
  2,832
  3,334
  3,877
  4,459
  5,079
  5,736
  6,429
  7,158
  7,921
  8,719
  9,552
  10,419
  11,321
  12,259
  13,233
  14,246
  15,298
Discount rate, %
 
  4.60
  4.83
  5.07
  5.33
  5.59
  5.87
  6.16
  6.47
  6.80
  7.14
  7.49
  7.87
  8.26
  8.67
  9.11
  9.56
  10.04
  10.54
  11.07
  11.62
  12.21
  12.82
  13.46
  14.13
  14.84
  15.58
  16.36
  17.17
  18.03
  18.93
PV of cash for distribution, $m
 
  -36
  -44
  -7
  59
  136
  225
  322
  424
  526
  623
  711
  786
  845
  884
  902
  899
  877
  836
  780
  713
  638
  558
  478
  400
  328
  263
  205
  156
  116
  84
Current shareholders' claim on cash, %
  100
  95.1
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3

Adecoagro S.A. is a holding company. The Company is involved in a range of businesses, including farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production and land transformation. The Company is organized into three main lines of business: farming; land transformation, and sugar, ethanol and energy. Its agricultural activities consist of harvesting certain agricultural products, including crops, rough rice and sugarcane, for sale to third parties and for internal use as inputs in its various manufacturing processes, and producing raw milk. Its manufacturing activities consist of selling manufactured products, including processed rice, sugar, ethanol and energy, among others, and providing services, such as grain warehousing and conditioning and handling and drying services, among others. The Company's land transformation activities consist of the acquisition of farmlands or businesses with underdeveloped or underutilized agricultural land.

FINANCIAL RATIOS  of  Adecoagro (AGRO)

Valuation Ratios
P/E Ratio 628.1
Price to Sales 1.5
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 4.9
Price to Free Cash Flow 10.5
Growth Rates
Sales Growth Rate 25.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -5.6%
Cap. Spend. - 3 Yr. Gr. Rate -9.9%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 64.8%
Total Debt to Equity 95.6%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.2%
Ret/ On Assets - 3 Yr. Avg. 1.3%
Return On Total Capital 0.2%
Ret/ On T. Cap. - 3 Yr. Avg. 0.2%
Return On Equity 0.3%
Return On Equity - 3 Yr. Avg. 0.3%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 21.4%
Gross Margin - 3 Yr. Avg. 19%
EBITDA Margin 21.9%
EBITDA Margin - 3 Yr. Avg. 23.7%
Operating Margin 19.7%
Oper. Margin - 3 Yr. Avg. 15.8%
Pre-Tax Margin 1.5%
Pre-Tax Margin - 3 Yr. Avg. 0.9%
Net Profit Margin 0.2%
Net Profit Margin - 3 Yr. Avg. 0.3%
Effective Tax Rate 69.2%
Eff/ Tax Rate - 3 Yr. Avg. 62%
Payout Ratio 0%

AGRO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AGRO stock intrinsic value calculation we used $863 million for the last fiscal year's total revenue generated by Adecoagro. The default revenue input number comes from 2016 income statement of Adecoagro. 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 AGRO stock valuation model: a) initial revenue growth rate of 39.8% 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 4.6%, whose default value for AGRO is calculated based on our internal credit rating of Adecoagro, 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 Adecoagro.
    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 AGRO stock the variable cost ratio is equal to 56.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $207 million in the base year in the intrinsic value calculation for AGRO 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 7.1% for Adecoagro.

Corporate tax rate of 27% is the nominal tax rate for Adecoagro. 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 AGRO 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 AGRO are equal to 65.1%.

Life of production assets of 4.5 years is the average useful life of capital assets used in Adecoagro 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 AGRO is equal to 32.7%. 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 - $664 million for Adecoagro - 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 120.89 million for Adecoagro 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 Adecoagro at the current share price and the inputted number of shares is $1.3 billion.

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COMPANY NEWS

▶ ETFs with exposure to Adecoagro SA : October 13, 2017   [Oct-13-17 10:28AM  Capital Cube]
▶ Adecoagro posts 2Q profit   [Aug-15-17 10:30PM  Associated Press]
▶ Adecoagro SA Value Analysis (NYSE:AGRO) : August 5, 2017   [Aug-04-17 08:09PM  Capital Cube]
▶ ETFs with exposure to Adecoagro SA : August 3, 2017   [Aug-03-17 07:30PM  Capital Cube]
▶ ETFs with exposure to Adecoagro SA : June 22, 2017   [Jun-22-17 03:16PM  Capital Cube]
▶ Adecoagro announces filing of Annual Report   [Jun-12-17 05:48PM  PR Newswire]
▶ Adecoagro Sees Opportunity Selling Corn, Rice to Mexico   [May-17-17 10:23PM  Bloomberg Video]
▶ Adecoagro posts 1Q profit   [May-15-17 07:47PM  Associated Press]
▶ Adecoagro SA Value Analysis (NYSE:AGRO) : May 12, 2017   [May-12-17 04:52PM  Capital Cube]
▶ Top Ranked Value Stocks to Buy for May 1st   [May-01-17 09:50AM  Zacks]
▶ Top Ranked Value Stocks to Buy for April 17th   [Apr-17-17 10:38AM  Zacks]
▶ Adecoagro SA Value Analysis (NYSE:AGRO) : January 5, 2017   [Jan-05-17 10:34AM  Capital Cube]
▶ Adecoagro Appoints Jim Anderson to Board of Directors   [Dec-29-16 04:23PM  PR Newswire]
▶ ETFs with exposure to Adecoagro SA : December 12, 2016   [Dec-12-16 01:56PM  Capital Cube]
▶ Is Adecoagro SA (AGRO) A Good Stock To Buy?   [Nov-30-16 04:35PM  at Insider Monkey]
▶ Adecoagro Announces Approval of Share Repurchase Program   [Sep-26-16 06:48PM  PR Newswire]
▶ ADECOAGRO S.A. Financials   [01:04PM  EDGAR Online Financials]
▶ Argentina Summit Panel on Agribusiness Outlook   [Apr-06-16 02:00PM  at Bloomberg]
▶ Billionaire George Soros Top Long-Term Holdings   [Apr-01-16 04:54PM  at Insider Monkey]
▶ AGR to provide consultancy manpower to Lundin Norway   [Mar-29-16 01:52AM  at noodls]
▶ Proxy Card for AGM 2016   [02:52PM  at noodls]
Financial statements of AGRO
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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