Intrinsic value of FMC Corporation - FMC

Previous Close

$85.59

  Intrinsic Value

$199.59

stock screener

  Rating & Target

str. buy

+133%

Previous close

$85.59

 
Intrinsic value

$199.59

 
Up/down potential

+133%

 
Rating

str. buy

We calculate the intrinsic value of FMC 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 0001), $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 11.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  24.50
  22.55
  20.80
  19.22
  17.79
  16.51
  15.36
  14.33
  13.39
  12.55
  11.80
  11.12
  10.51
  9.96
  9.46
  9.01
  8.61
  8.25
  7.93
  7.63
  7.37
  7.13
  6.92
  6.73
  6.56
  6.40
  6.26
  6.13
  6.02
  5.92
Revenue, $m
  5,886
  7,214
  8,714
  10,388
  12,237
  14,258
  16,448
  18,804
  21,323
  24,000
  26,832
  29,816
  32,948
  36,229
  39,657
  43,231
  46,955
  50,830
  54,859
  59,047
  63,399
  67,922
  72,623
  77,509
  82,590
  87,875
  93,376
  99,104
  105,071
  111,289
Variable operating expenses, $m
  3,865
  4,643
  5,521
  6,502
  7,585
  8,769
  10,052
  11,432
  12,907
  14,476
  15,717
  17,465
  19,300
  21,221
  23,229
  25,323
  27,504
  29,774
  32,134
  34,587
  37,137
  39,786
  42,539
  45,402
  48,378
  51,474
  54,696
  58,051
  61,546
  65,189
Fixed operating expenses, $m
  691
  706
  722
  737
  754
  770
  787
  805
  822
  840
  859
  878
  897
  917
  937
  958
  979
  1,000
  1,022
  1,045
  1,068
  1,091
  1,115
  1,140
  1,165
  1,190
  1,217
  1,243
  1,271
  1,299
Total operating expenses, $m
  4,556
  5,349
  6,243
  7,239
  8,339
  9,539
  10,839
  12,237
  13,729
  15,316
  16,576
  18,343
  20,197
  22,138
  24,166
  26,281
  28,483
  30,774
  33,156
  35,632
  38,205
  40,877
  43,654
  46,542
  49,543
  52,664
  55,913
  59,294
  62,817
  66,488
Operating income, $m
  1,330
  1,865
  2,471
  3,149
  3,898
  4,719
  5,609
  6,568
  7,593
  8,684
  10,256
  11,473
  12,751
  14,091
  15,490
  16,951
  18,472
  20,056
  21,703
  23,415
  25,195
  27,045
  28,968
  30,968
  33,047
  35,211
  37,464
  39,810
  42,254
  44,802
EBITDA, $m
  1,874
  2,437
  3,075
  3,788
  4,578
  5,441
  6,379
  7,388
  8,468
  9,616
  10,831
  12,112
  13,458
  14,867
  16,341
  17,877
  19,479
  21,145
  22,879
  24,681
  26,554
  28,501
  30,525
  32,629
  34,818
  37,095
  39,466
  41,934
  44,506
  47,188
Interest expense (income), $m
  82
  151
  241
  345
  463
  594
  739
  897
  1,068
  1,253
  1,450
  1,659
  1,881
  2,114
  2,360
  2,616
  2,885
  3,164
  3,456
  3,759
  4,074
  4,402
  4,743
  5,097
  5,465
  5,847
  6,245
  6,658
  7,089
  7,537
  8,004
Earnings before tax, $m
  1,179
  1,623
  2,125
  2,686
  3,304
  3,980
  4,712
  5,500
  6,341
  7,235
  8,597
  9,592
  10,637
  11,731
  12,874
  14,066
  15,308
  16,600
  17,944
  19,341
  20,793
  22,302
  23,871
  25,503
  27,200
  28,966
  30,805
  32,721
  34,717
  36,798
Tax expense, $m
  318
  438
  574
  725
  892
  1,075
  1,272
  1,485
  1,712
  1,953
  2,321
  2,590
  2,872
  3,167
  3,476
  3,798
  4,133
  4,482
  4,845
  5,222
  5,614
  6,022
  6,445
  6,886
  7,344
  7,821
  8,317
  8,835
  9,373
  9,935
Net income, $m
  861
  1,185
  1,552
  1,961
  2,412
  2,905
  3,440
  4,015
  4,629
  5,281
  6,276
  7,002
  7,765
  8,564
  9,398
  10,268
  11,175
  12,118
  13,099
  14,119
  15,179
  16,281
  17,426
  18,617
  19,856
  21,146
  22,488
  23,886
  25,343
  26,862

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  12,418
  15,219
  18,384
  21,916
  25,816
  30,079
  34,700
  39,672
  44,985
  50,633
  56,608
  62,902
  69,511
  76,432
  83,664
  91,206
  99,062
  107,236
  115,737
  124,572
  133,754
  143,296
  153,212
  163,521
  174,240
  185,391
  196,997
  209,080
  221,668
  234,787
Adjusted assets (=assets-cash), $m
  12,418
  15,219
  18,384
  21,916
  25,816
  30,079
  34,700
  39,672
  44,985
  50,633
  56,608
  62,902
  69,511
  76,432
  83,664
  91,206
  99,062
  107,236
  115,737
  124,572
  133,754
  143,296
  153,212
  163,521
  174,240
  185,391
  196,997
  209,080
  221,668
  234,787
Revenue / Adjusted assets
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
  0.474
Average production assets, $m
  3,773
  4,624
  5,586
  6,659
  7,844
  9,139
  10,543
  12,054
  13,668
  15,384
  17,199
  19,112
  21,120
  23,223
  25,420
  27,711
  30,098
  32,582
  35,165
  37,849
  40,639
  43,538
  46,551
  49,683
  52,940
  56,328
  59,854
  63,526
  67,350
  71,336
Working capital, $m
  1,854
  2,272
  2,745
  3,272
  3,855
  4,491
  5,181
  5,923
  6,717
  7,560
  8,452
  9,392
  10,379
  11,412
  12,492
  13,618
  14,791
  16,011
  17,281
  18,600
  19,971
  21,395
  22,876
  24,415
  26,016
  27,681
  29,414
  31,218
  33,097
  35,056
Total debt, $m
  4,472
  6,396
  8,570
  10,997
  13,676
  16,605
  19,780
  23,195
  26,846
  30,726
  34,830
  39,154
  43,695
  48,450
  53,417
  58,599
  63,996
  69,612
  75,452
  81,522
  87,830
  94,385
  101,197
  108,279
  115,644
  123,304
  131,277
  139,579
  148,227
  157,240
Total liabilities, $m
  8,531
  10,455
  12,630
  15,056
  17,735
  20,664
  23,839
  27,255
  30,905
  34,785
  38,889
  43,214
  47,754
  52,509
  57,477
  62,658
  68,055
  73,671
  79,511
  85,581
  91,889
  98,444
  105,257
  112,339
  119,703
  127,364
  135,337
  143,638
  152,286
  161,299
Total equity, $m
  3,887
  4,763
  5,754
  6,860
  8,080
  9,415
  10,861
  12,417
  14,080
  15,848
  17,718
  19,688
  21,757
  23,923
  26,187
  28,547
  31,006
  33,565
  36,226
  38,991
  41,865
  44,852
  47,955
  51,182
  54,537
  58,027
  61,660
  65,442
  69,382
  73,488
Total liabilities and equity, $m
  12,418
  15,218
  18,384
  21,916
  25,815
  30,079
  34,700
  39,672
  44,985
  50,633
  56,607
  62,902
  69,511
  76,432
  83,664
  91,205
  99,061
  107,236
  115,737
  124,572
  133,754
  143,296
  153,212
  163,521
  174,240
  185,391
  196,997
  209,080
  221,668
  234,787
Debt-to-equity ratio
  1.150
  1.340
  1.490
  1.600
  1.690
  1.760
  1.820
  1.870
  1.910
  1.940
  1.970
  1.990
  2.010
  2.030
  2.040
  2.050
  2.060
  2.070
  2.080
  2.090
  2.100
  2.100
  2.110
  2.120
  2.120
  2.120
  2.130
  2.130
  2.140
  2.140
Adjusted equity ratio
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  861
  1,185
  1,552
  1,961
  2,412
  2,905
  3,440
  4,015
  4,629
  5,281
  6,276
  7,002
  7,765
  8,564
  9,398
  10,268
  11,175
  12,118
  13,099
  14,119
  15,179
  16,281
  17,426
  18,617
  19,856
  21,146
  22,488
  23,886
  25,343
  26,862
Depreciation, amort., depletion, $m
  543
  572
  604
  640
  680
  723
  770
  820
  874
  932
  575
  639
  706
  777
  850
  927
  1,007
  1,090
  1,176
  1,266
  1,359
  1,456
  1,557
  1,662
  1,771
  1,884
  2,002
  2,125
  2,253
  2,386
Funds from operations, $m
  1,404
  1,757
  2,156
  2,601
  3,092
  3,628
  4,210
  4,835
  5,503
  6,213
  6,851
  7,642
  8,471
  9,340
  10,248
  11,195
  12,181
  13,208
  14,275
  15,385
  16,538
  17,737
  18,983
  20,279
  21,627
  23,029
  24,490
  26,011
  27,596
  29,248
Change in working capital, $m
  365
  418
  473
  527
  582
  637
  690
  742
  793
  843
  892
  940
  987
  1,033
  1,080
  1,126
  1,173
  1,221
  1,269
  1,319
  1,371
  1,425
  1,481
  1,539
  1,601
  1,665
  1,733
  1,804
  1,879
  1,959
Cash from operations, $m
  1,039
  1,339
  1,683
  2,073
  2,509
  2,992
  3,520
  4,093
  4,710
  5,370
  5,959
  6,702
  7,485
  8,307
  9,169
  10,069
  11,008
  11,987
  13,006
  14,065
  15,167
  16,312
  17,502
  18,740
  20,026
  21,364
  22,757
  24,206
  25,716
  27,289
Maintenance CAPEX, $m
  -101
  -126
  -155
  -187
  -223
  -262
  -306
  -353
  -403
  -457
  -515
  -575
  -639
  -706
  -777
  -850
  -927
  -1,007
  -1,090
  -1,176
  -1,266
  -1,359
  -1,456
  -1,557
  -1,662
  -1,771
  -1,884
  -2,002
  -2,125
  -2,253
New CAPEX, $m
  -743
  -851
  -962
  -1,073
  -1,185
  -1,295
  -1,404
  -1,510
  -1,614
  -1,716
  -1,815
  -1,912
  -2,008
  -2,103
  -2,197
  -2,292
  -2,387
  -2,484
  -2,583
  -2,685
  -2,790
  -2,899
  -3,013
  -3,132
  -3,257
  -3,388
  -3,526
  -3,671
  -3,825
  -3,986
Cash from investing activities, $m
  -844
  -977
  -1,117
  -1,260
  -1,408
  -1,557
  -1,710
  -1,863
  -2,017
  -2,173
  -2,330
  -2,487
  -2,647
  -2,809
  -2,974
  -3,142
  -3,314
  -3,491
  -3,673
  -3,861
  -4,056
  -4,258
  -4,469
  -4,689
  -4,919
  -5,159
  -5,410
  -5,673
  -5,950
  -6,239
Free cash flow, $m
  195
  362
  567
  813
  1,102
  1,434
  1,810
  2,230
  2,692
  3,197
  3,629
  4,214
  4,837
  5,498
  6,195
  6,927
  7,695
  8,497
  9,333
  10,205
  11,111
  12,054
  13,033
  14,051
  15,108
  16,206
  17,347
  18,533
  19,767
  21,051
Issuance/(repayment) of debt, $m
  1,678
  1,924
  2,174
  2,427
  2,679
  2,929
  3,175
  3,415
  3,650
  3,880
  4,104
  4,324
  4,541
  4,755
  4,968
  5,181
  5,397
  5,616
  5,840
  6,070
  6,308
  6,555
  6,813
  7,082
  7,364
  7,661
  7,973
  8,301
  8,648
  9,013
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
Cash from financing (excl. dividends), $m  
  1,678
  1,924
  2,174
  2,427
  2,679
  2,929
  3,175
  3,415
  3,650
  3,880
  4,104
  4,324
  4,541
  4,755
  4,968
  5,181
  5,397
  5,616
  5,840
  6,070
  6,308
  6,555
  6,813
  7,082
  7,364
  7,661
  7,973
  8,301
  8,648
  9,013
Total cash flow (excl. dividends), $m
  1,873
  2,286
  2,741
  3,240
  3,781
  4,363
  4,985
  5,645
  6,343
  7,077
  7,734
  8,538
  9,378
  10,253
  11,163
  12,109
  13,092
  14,113
  15,173
  16,275
  17,419
  18,609
  19,846
  21,133
  22,472
  23,867
  25,320
  26,835
  28,415
  30,064
Retained Cash Flow (-), $m
  -766
  -877
  -991
  -1,106
  -1,221
  -1,334
  -1,446
  -1,556
  -1,663
  -1,768
  -1,870
  -1,970
  -2,069
  -2,166
  -2,263
  -2,361
  -2,459
  -2,559
  -2,661
  -2,766
  -2,874
  -2,987
  -3,104
  -3,227
  -3,355
  -3,490
  -3,632
  -3,782
  -3,940
  -4,106
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
  1,107
  1,409
  1,750
  2,134
  2,560
  3,029
  3,538
  4,089
  4,680
  5,309
  5,864
  6,568
  7,309
  8,086
  8,899
  9,748
  10,633
  11,554
  12,513
  13,509
  14,545
  15,622
  16,742
  17,906
  19,117
  20,376
  21,687
  23,053
  24,475
  25,957
Discount rate, %
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for distribution, $m
  1,028
  1,206
  1,371
  1,517
  1,637
  1,726
  1,779
  1,796
  1,774
  1,718
  1,598
  1,488
  1,357
  1,212
  1,059
  906
  758
  620
  495
  386
  293
  217
  157
  110
  75
  49
  32
  19
  12
  7
Current shareholders' claim on cash, %
  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

FMC Corporation is a diversified chemical company serving agricultural, consumer and industrial markets. The Company operates in three business segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium. As of December 31, 2016, the FMC Agricultural Solutions segment developed, marketed and sold three classes of crop protection chemicals: insecticides, herbicides and fungicides. The Company's FMC Agricultural Solutions segment operates in the agrochemicals industry. This segment develops, manufactures and sells a portfolio of professional pest control, and lawn and garden products. The FMC Health and Nutrition segment focuses on nutritional ingredients, health excipients and functional health ingredients. The Company's FMC Health and Nutrition segment focuses on food ingredients, pharmaceutical excipients and omega-3 oils. The Company's FMC Lithium segment manufactures lithium for use in a range of lithium products.

FINANCIAL RATIOS  of  FMC Corporation (FMC)

Valuation Ratios
P/E Ratio 54.7
Price to Sales 3.5
Price to Book 5.8
Price to Tangible Book
Price to Cash Flow 23
Price to Free Cash Flow 31.2
Growth Rates
Sales Growth Rate 0.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 20.2%
Cap. Spend. - 3 Yr. Gr. Rate -10%
Financial Strength
Quick Ratio 1
Current Ratio 0.3
LT Debt to Equity 91.9%
Total Debt to Equity 96.7%
Interest Coverage 5
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 7.1%
Return On Total Capital 5.3%
Ret/ On T. Cap. - 3 Yr. Avg. 9.4%
Return On Equity 10.9%
Return On Equity - 3 Yr. Avg. 20%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 36.6%
Gross Margin - 3 Yr. Avg. 35.5%
EBITDA Margin 17%
EBITDA Margin - 3 Yr. Avg. 11.9%
Operating Margin 13.3%
Oper. Margin - 3 Yr. Avg. 8.2%
Pre-Tax Margin 10.3%
Pre-Tax Margin - 3 Yr. Avg. 5.8%
Net Profit Margin 6.4%
Net Profit Margin - 3 Yr. Avg. 10.2%
Effective Tax Rate 27.7%
Eff/ Tax Rate - 3 Yr. Avg. 2.4%
Payout Ratio 42.6%

FMC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FMC stock intrinsic value calculation we used $4728 million for the last fiscal year's total revenue generated by FMC Corporation. The default revenue input number comes from 0001 income statement of FMC Corporation. 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 FMC stock valuation model: a) initial revenue growth rate of 24.5% 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 7.7%, whose default value for FMC is calculated based on our internal credit rating of FMC Corporation, 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 FMC Corporation.
    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 FMC stock the variable cost ratio is equal to 67.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $676 million in the base year in the intrinsic value calculation for FMC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for FMC Corporation.

Corporate tax rate of 27% is the nominal tax rate for FMC Corporation. 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 FMC 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 FMC are equal to 64.1%.

Life of production assets of 29.9 years is the average useful life of capital assets used in FMC Corporation 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 FMC is equal to 31.5%. 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 - $3121.1 million for FMC Corporation - 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 132.315 million for FMC Corporation 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 FMC Corporation at the current share price and the inputted number of shares is $11.3 billion.

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