Intrinsic value of Braskem ADR - BAK

Previous Close

$26.25

  Intrinsic Value

$29.88

stock screener

  Rating & Target

hold

+14%

Previous close

$26.25

 
Intrinsic value

$29.88

 
Up/down potential

+14%

 
Rating

hold

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

We calculate the intrinsic value of BAK 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 10.7

 

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, %
  1.67
  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
  15,070
  15,371
  15,725
  16,129
  16,583
  17,086
  17,637
  18,238
  18,888
  19,588
  20,340
  21,144
  22,003
  22,916
  23,887
  24,918
  26,010
  27,166
  28,388
  29,680
  31,043
  32,482
  34,000
  35,599
  37,285
  39,060
  40,929
  42,896
  44,966
  47,143
  49,434
Variable operating expenses, $m
 
  13,111
  13,411
  13,754
  14,139
  14,565
  15,033
  15,543
  16,095
  16,689
  17,327
  17,945
  18,673
  19,449
  20,273
  21,147
  22,074
  23,055
  24,092
  25,189
  26,346
  27,567
  28,855
  30,212
  31,643
  33,149
  34,735
  36,405
  38,161
  40,010
  41,954
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
  13,188
  13,111
  13,411
  13,754
  14,139
  14,565
  15,033
  15,543
  16,095
  16,689
  17,327
  17,945
  18,673
  19,449
  20,273
  21,147
  22,074
  23,055
  24,092
  25,189
  26,346
  27,567
  28,855
  30,212
  31,643
  33,149
  34,735
  36,405
  38,161
  40,010
  41,954
Operating income, $m
  1,882
  2,261
  2,314
  2,376
  2,444
  2,520
  2,604
  2,695
  2,793
  2,899
  3,013
  3,200
  3,329
  3,468
  3,615
  3,771
  3,936
  4,111
  4,296
  4,491
  4,697
  4,915
  5,145
  5,387
  5,642
  5,911
  6,193
  6,491
  6,804
  7,134
  7,480
EBITDA, $m
  2,730
  3,144
  3,217
  3,299
  3,392
  3,495
  3,608
  3,731
  3,864
  4,007
  4,161
  4,325
  4,501
  4,688
  4,886
  5,097
  5,320
  5,557
  5,807
  6,071
  6,350
  6,644
  6,955
  7,282
  7,627
  7,990
  8,372
  8,774
  9,198
  9,643
  10,112
Interest expense (income), $m
  486
  348
  337
  349
  362
  377
  394
  412
  432
  453
  477
  502
  528
  557
  587
  619
  654
  690
  728
  769
  812
  857
  905
  955
  1,008
  1,064
  1,123
  1,185
  1,250
  1,319
  1,391
Earnings before tax, $m
  -44
  1,913
  1,978
  2,027
  2,082
  2,143
  2,210
  2,283
  2,361
  2,446
  2,536
  2,698
  2,801
  2,911
  3,027
  3,151
  3,282
  3,421
  3,568
  3,722
  3,886
  4,058
  4,240
  4,432
  4,634
  4,847
  5,071
  5,306
  5,554
  5,815
  6,089
Tax expense, $m
  195
  517
  534
  547
  562
  579
  597
  616
  637
  660
  685
  728
  756
  786
  817
  851
  886
  924
  963
  1,005
  1,049
  1,096
  1,145
  1,197
  1,251
  1,309
  1,369
  1,433
  1,500
  1,570
  1,644
Net income, $m
  -130
  1,397
  1,444
  1,480
  1,520
  1,565
  1,613
  1,666
  1,724
  1,785
  1,851
  1,969
  2,045
  2,125
  2,210
  2,300
  2,396
  2,497
  2,604
  2,717
  2,837
  2,963
  3,095
  3,235
  3,383
  3,538
  3,701
  3,873
  4,055
  4,245
  4,445

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,495
  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
  16,385
  14,167
  14,493
  14,866
  15,284
  15,747
  16,255
  16,809
  17,408
  18,054
  18,747
  19,488
  20,279
  21,121
  22,016
  22,966
  23,972
  25,038
  26,164
  27,355
  28,611
  29,938
  31,336
  32,810
  34,364
  36,000
  37,722
  39,535
  41,443
  43,450
  45,561
Adjusted assets (=assets-cash), $m
  13,890
  14,167
  14,493
  14,866
  15,284
  15,747
  16,255
  16,809
  17,408
  18,054
  18,747
  19,488
  20,279
  21,121
  22,016
  22,966
  23,972
  25,038
  26,164
  27,355
  28,611
  29,938
  31,336
  32,810
  34,364
  36,000
  37,722
  39,535
  41,443
  43,450
  45,561
Revenue / Adjusted assets
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
  1.085
Average production assets, $m
  5,213
  5,319
  5,441
  5,581
  5,738
  5,912
  6,102
  6,310
  6,535
  6,778
  7,038
  7,316
  7,613
  7,929
  8,265
  8,622
  8,999
  9,399
  9,822
  10,269
  10,741
  11,239
  11,764
  12,317
  12,900
  13,515
  14,161
  14,842
  15,558
  16,312
  17,104
Working capital, $m
  -2,144
  -523
  -535
  -548
  -564
  -581
  -600
  -620
  -642
  -666
  -692
  -719
  -748
  -779
  -812
  -847
  -884
  -924
  -965
  -1,009
  -1,055
  -1,104
  -1,156
  -1,210
  -1,268
  -1,328
  -1,392
  -1,458
  -1,529
  -1,603
  -1,681
Total debt, $m
  11,189
  8,420
  8,714
  9,049
  9,425
  9,842
  10,300
  10,798
  11,337
  11,919
  12,542
  13,209
  13,921
  14,679
  15,484
  16,339
  17,245
  18,204
  19,218
  20,289
  21,420
  22,614
  23,873
  25,199
  26,597
  28,070
  29,620
  31,252
  32,969
  34,775
  36,675
Total liabilities, $m
  15,519
  12,750
  13,044
  13,379
  13,755
  14,172
  14,630
  15,128
  15,667
  16,249
  16,872
  17,539
  18,251
  19,009
  19,814
  20,669
  21,575
  22,534
  23,548
  24,619
  25,750
  26,944
  28,203
  29,529
  30,927
  32,400
  33,950
  35,582
  37,299
  39,105
  41,005
Total equity, $m
  866
  1,417
  1,449
  1,487
  1,528
  1,575
  1,626
  1,681
  1,741
  1,805
  1,875
  1,949
  2,028
  2,112
  2,202
  2,297
  2,397
  2,504
  2,616
  2,735
  2,861
  2,994
  3,134
  3,281
  3,436
  3,600
  3,772
  3,954
  4,144
  4,345
  4,556
Total liabilities and equity, $m
  16,385
  14,167
  14,493
  14,866
  15,283
  15,747
  16,256
  16,809
  17,408
  18,054
  18,747
  19,488
  20,279
  21,121
  22,016
  22,966
  23,972
  25,038
  26,164
  27,354
  28,611
  29,938
  31,337
  32,810
  34,363
  36,000
  37,722
  39,536
  41,443
  43,450
  45,561
Debt-to-equity ratio
  12.920
  5.940
  6.010
  6.090
  6.170
  6.250
  6.340
  6.420
  6.510
  6.600
  6.690
  6.780
  6.860
  6.950
  7.030
  7.110
  7.190
  7.270
  7.350
  7.420
  7.490
  7.550
  7.620
  7.680
  7.740
  7.800
  7.850
  7.900
  7.960
  8.000
  8.050
Adjusted equity ratio
  -0.117
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -130
  1,397
  1,444
  1,480
  1,520
  1,565
  1,613
  1,666
  1,724
  1,785
  1,851
  1,969
  2,045
  2,125
  2,210
  2,300
  2,396
  2,497
  2,604
  2,717
  2,837
  2,963
  3,095
  3,235
  3,383
  3,538
  3,701
  3,873
  4,055
  4,245
  4,445
Depreciation, amort., depletion, $m
  848
  883
  902
  924
  948
  975
  1,004
  1,036
  1,071
  1,108
  1,148
  1,126
  1,171
  1,220
  1,272
  1,326
  1,385
  1,446
  1,511
  1,580
  1,652
  1,729
  1,810
  1,895
  1,985
  2,079
  2,179
  2,283
  2,394
  2,509
  2,631
Funds from operations, $m
  322
  2,280
  2,346
  2,403
  2,468
  2,539
  2,617
  2,702
  2,794
  2,893
  2,999
  3,095
  3,216
  3,345
  3,482
  3,627
  3,781
  3,943
  4,115
  4,297
  4,489
  4,692
  4,905
  5,130
  5,367
  5,617
  5,880
  6,157
  6,448
  6,754
  7,077
Change in working capital, $m
  -1,179
  -10
  -12
  -14
  -15
  -17
  -19
  -20
  -22
  -24
  -26
  -27
  -29
  -31
  -33
  -35
  -37
  -39
  -42
  -44
  -46
  -49
  -52
  -54
  -57
  -60
  -64
  -67
  -70
  -74
  -78
Cash from operations, $m
  1,501
  2,290
  2,358
  2,417
  2,483
  2,556
  2,636
  2,723
  2,816
  2,917
  3,025
  3,122
  3,245
  3,376
  3,515
  3,662
  3,818
  3,983
  4,157
  4,341
  4,536
  4,741
  4,957
  5,185
  5,425
  5,678
  5,944
  6,224
  6,518
  6,828
  7,154
Maintenance CAPEX, $m
  0
  -802
  -818
  -837
  -859
  -883
  -909
  -939
  -971
  -1,005
  -1,043
  -1,083
  -1,126
  -1,171
  -1,220
  -1,272
  -1,326
  -1,385
  -1,446
  -1,511
  -1,580
  -1,652
  -1,729
  -1,810
  -1,895
  -1,985
  -2,079
  -2,179
  -2,283
  -2,394
  -2,509
New CAPEX, $m
  -909
  -106
  -122
  -140
  -157
  -174
  -191
  -208
  -225
  -242
  -260
  -278
  -297
  -316
  -336
  -357
  -378
  -400
  -423
  -447
  -472
  -498
  -525
  -553
  -583
  -614
  -647
  -681
  -716
  -753
  -793
Cash from investing activities, $m
  -898
  -908
  -940
  -977
  -1,016
  -1,057
  -1,100
  -1,147
  -1,196
  -1,247
  -1,303
  -1,361
  -1,423
  -1,487
  -1,556
  -1,629
  -1,704
  -1,785
  -1,869
  -1,958
  -2,052
  -2,150
  -2,254
  -2,363
  -2,478
  -2,599
  -2,726
  -2,860
  -2,999
  -3,147
  -3,302
Free cash flow, $m
  603
  1,383
  1,417
  1,440
  1,468
  1,500
  1,536
  1,576
  1,620
  1,669
  1,722
  1,761
  1,823
  1,888
  1,959
  2,034
  2,113
  2,198
  2,288
  2,383
  2,484
  2,590
  2,703
  2,821
  2,947
  3,079
  3,218
  3,364
  3,519
  3,681
  3,852
Issuance/(repayment) of debt, $m
  -240
  -274
  293
  335
  376
  417
  458
  498
  539
  581
  624
  667
  712
  758
  805
  855
  906
  959
  1,014
  1,071
  1,131
  1,194
  1,259
  1,327
  1,398
  1,472
  1,550
  1,632
  1,717
  1,806
  1,900
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  -240
  -274
  293
  335
  376
  417
  458
  498
  539
  581
  624
  667
  712
  758
  805
  855
  906
  959
  1,014
  1,071
  1,131
  1,194
  1,259
  1,327
  1,398
  1,472
  1,550
  1,632
  1,717
  1,806
  1,900
Total cash flow (excl. dividends), $m
  548
  1,109
  1,711
  1,775
  1,844
  1,917
  1,993
  2,074
  2,160
  2,250
  2,345
  2,428
  2,535
  2,646
  2,764
  2,888
  3,019
  3,157
  3,302
  3,454
  3,615
  3,784
  3,961
  4,148
  4,345
  4,551
  4,768
  4,996
  5,236
  5,488
  5,752
Retained Cash Flow (-), $m
  -351
  -551
  -33
  -37
  -42
  -46
  -51
  -55
  -60
  -65
  -69
  -74
  -79
  -84
  -89
  -95
  -101
  -107
  -113
  -119
  -126
  -133
  -140
  -147
  -155
  -164
  -172
  -181
  -191
  -201
  -211
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
 
  558
  1,678
  1,738
  1,802
  1,870
  1,942
  2,019
  2,100
  2,186
  2,276
  2,354
  2,455
  2,562
  2,675
  2,793
  2,919
  3,050
  3,189
  3,335
  3,489
  3,651
  3,822
  4,001
  4,189
  4,387
  4,596
  4,815
  5,045
  5,287
  5,541
Discount rate, %
 
  9.00
  9.45
  9.92
  10.42
  10.94
  11.49
  12.06
  12.66
  13.30
  13.96
  14.66
  15.39
  16.16
  16.97
  17.82
  18.71
  19.65
  20.63
  21.66
  22.74
  23.88
  25.07
  26.33
  27.64
  29.03
  30.48
  32.00
  33.60
  35.28
  37.05
PV of cash for distribution, $m
 
  512
  1,401
  1,309
  1,212
  1,113
  1,012
  910
  809
  711
  616
  523
  441
  365
  298
  239
  188
  145
  109
  80
  58
  41
  28
  19
  12
  8
  5
  3
  2
  1
  0
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

Braskem S.A. produces thermoplastic resins. The Company's segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.

FINANCIAL RATIOS  of  Braskem ADR (BAK)

Valuation Ratios
P/E Ratio -160.7
Price to Sales 1.4
Price to Book 24.1
Price to Tangible Book
Price to Cash Flow 13.9
Price to Free Cash Flow 35.3
Growth Rates
Sales Growth Rate 1.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -30.3%
Cap. Spend. - 3 Yr. Gr. Rate -12.7%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 816.3%
Total Debt to Equity 1292%
Interest Coverage 1
Management Effectiveness
Return On Assets 14.1%
Ret/ On Assets - 3 Yr. Avg. 7.6%
Return On Total Capital -1%
Ret/ On T. Cap. - 3 Yr. Avg. 3%
Return On Equity -18.8%
Return On Equity - 3 Yr. Avg. 24.5%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 26.7%
Gross Margin - 3 Yr. Avg. 20.4%
EBITDA Margin 8.6%
EBITDA Margin - 3 Yr. Avg. 10.9%
Operating Margin 12.5%
Oper. Margin - 3 Yr. Avg. 11.6%
Pre-Tax Margin -0.3%
Pre-Tax Margin - 3 Yr. Avg. 3.8%
Net Profit Margin -0.9%
Net Profit Margin - 3 Yr. Avg. 2.4%
Effective Tax Rate -443.2%
Eff/ Tax Rate - 3 Yr. Avg. -119.9%
Payout Ratio -486.2%

BAK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BAK stock intrinsic value calculation we used $15070 million for the last fiscal year's total revenue generated by Braskem ADR. The default revenue input number comes from 2016 income statement of Braskem 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 BAK 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 9%, whose default value for BAK is calculated based on our internal credit rating of Braskem 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 Braskem 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 BAK stock the variable cost ratio is equal to 85.3%.

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 BAK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4% for Braskem ADR.

Corporate tax rate of 27% is the nominal tax rate for Braskem 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 BAK 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 BAK are equal to 34.6%.

Life of production assets of 6.5 years is the average useful life of capital assets used in Braskem 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 BAK is equal to -3.4%. 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 - $866 million for Braskem 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 407.119 million for Braskem 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 Braskem ADR at the current share price and the inputted number of shares is $10.7 billion.

RELATED COMPANIES Price Int.Val. Rating
LYB LyondellBasell 107.14 325.28  str.buy
PBR Petroleo Brasi 9.70 3.04  str.sell
COP ConocoPhillips 51.57 7.19  str.sell
WLK Westlake Chemi 99.78 447.23  str.buy
SSL Sasol ADR 30.80 10.24  str.sell
UGP Ultrapar Parti 21.46 15.13  sell

COMPANY NEWS

▶ New Strong Buy Stocks for November 28th   [Nov-28-17 06:37AM  Zacks]
▶ New Strong Buy Stocks for November 24th   [Nov-24-17 08:43AM  Zacks]
▶ New Strong Buy Stocks for November 13th   [Nov-13-17 10:04AM  Zacks]
▶ This Rumor Pushed Braskem 19.6% Higher in October   [Nov-06-17 01:03PM  Motley Fool]
▶ 5 Scary Good Stocks for Halloween   [Oct-31-17 04:37PM  Zacks]
▶ LyondellBasell reportedly eyeing Braskem acquisition   [11:28AM  American City Business Journals]
▶ LyondellBasell Industries Rose on October 30   [10:45AM  Market Realist]
▶ [$$] LyondellBasell Makes Takeover Approach to Braskem   [12:32AM  The Wall Street Journal]
▶ [$$] LyondellBasell Makes Takeover Approach to Braskem   [01:46PM  The Wall Street Journal]
▶ 3 Monster Stocks in the Making   [Oct-10-17 06:03AM  Motley Fool]
▶ Braskem's 2016 Form 20-F was Filed   [Sep-22-17 09:13PM  PR Newswire]
▶ Braskem (BAK) in Focus: Stock Moves 6.8% Higher   [Sep-21-17 08:52AM  Zacks]
▶ Braskem denies reports on merger of stock classes   [Sep-20-17 07:25PM  Reuters]
▶ [$$] Braskem Signs $10 Million Settlement Over Bribery Scandal   [Sep-14-17 06:43PM  The Wall Street Journal]
▶ How Safe Is Braskem and Its 3.2% Dividend Yield?   [Aug-24-17 10:31AM  Motley Fool]
▶ Braskem announces 2Q17 Results   [Aug-15-17 11:15PM  PR Newswire]
Financial statements of BAK
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.