Intrinsic value of Fresenius Medical Care ADR - FMS

Previous Close

$49.72

  Intrinsic Value

$90.95

stock screener

  Rating & Target

str. buy

+83%

Previous close

$49.72

 
Intrinsic value

$90.95

 
Up/down potential

+83%

 
Rating

str. buy

We calculate the intrinsic value of FMS 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 2017), $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 15.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.30
  7.07
  6.86
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.35
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.17
  5.15
  5.13
  5.12
  5.11
Revenue, $m
  19,082
  20,431
  21,834
  23,291
  24,807
  26,385
  28,026
  29,736
  31,517
  33,374
  35,310
  37,331
  39,440
  41,642
  43,943
  46,349
  48,864
  51,494
  54,247
  57,128
  60,144
  63,302
  66,611
  70,077
  73,710
  77,517
  81,508
  85,692
  90,080
  94,681
Variable operating expenses, $m
  16,279
  17,340
  18,442
  19,588
  20,780
  22,020
  23,310
  24,654
  26,054
  27,514
  27,757
  29,346
  31,003
  32,735
  34,544
  36,435
  38,412
  40,480
  42,643
  44,908
  47,279
  49,762
  52,363
  55,087
  57,943
  60,936
  64,073
  67,362
  70,812
  74,429
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
  16,279
  17,340
  18,442
  19,588
  20,780
  22,020
  23,310
  24,654
  26,054
  27,514
  27,757
  29,346
  31,003
  32,735
  34,544
  36,435
  38,412
  40,480
  42,643
  44,908
  47,279
  49,762
  52,363
  55,087
  57,943
  60,936
  64,073
  67,362
  70,812
  74,429
Operating income, $m
  2,803
  3,092
  3,392
  3,703
  4,028
  4,365
  4,716
  5,082
  5,463
  5,860
  7,553
  7,985
  8,436
  8,907
  9,400
  9,914
  10,452
  11,015
  11,603
  12,220
  12,865
  13,540
  14,248
  14,990
  15,767
  16,581
  17,435
  18,330
  19,268
  20,253
EBITDA, $m
  5,885
  6,301
  6,734
  7,183
  7,651
  8,137
  8,643
  9,171
  9,720
  10,293
  10,890
  11,513
  12,163
  12,843
  13,552
  14,294
  15,070
  15,881
  16,730
  17,618
  18,548
  19,523
  20,543
  21,612
  22,732
  23,906
  25,137
  26,428
  27,781
  29,200
Interest expense (income), $m
  351
  402
  458
  516
  577
  640
  705
  773
  844
  918
  994
  1,074
  1,158
  1,245
  1,336
  1,431
  1,530
  1,634
  1,742
  1,856
  1,975
  2,099
  2,229
  2,365
  2,508
  2,657
  2,814
  2,978
  3,150
  3,331
  3,520
Earnings before tax, $m
  2,401
  2,634
  2,875
  3,127
  3,388
  3,660
  3,943
  4,238
  4,545
  4,866
  6,479
  6,827
  7,191
  7,571
  7,969
  8,384
  8,818
  9,272
  9,748
  10,245
  10,766
  11,312
  11,883
  12,482
  13,109
  13,767
  14,456
  15,179
  15,937
  16,733
Tax expense, $m
  648
  711
  776
  844
  915
  988
  1,065
  1,144
  1,227
  1,314
  1,749
  1,843
  1,942
  2,044
  2,152
  2,264
  2,381
  2,504
  2,632
  2,766
  2,907
  3,054
  3,208
  3,370
  3,540
  3,717
  3,903
  4,098
  4,303
  4,518
Net income, $m
  1,753
  1,922
  2,099
  2,282
  2,473
  2,672
  2,879
  3,094
  3,318
  3,552
  4,729
  4,984
  5,250
  5,527
  5,817
  6,120
  6,437
  6,769
  7,116
  7,479
  7,859
  8,257
  8,675
  9,112
  9,570
  10,050
  10,553
  11,081
  11,634
  12,215

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
  25,787
  27,610
  29,505
  31,475
  33,523
  35,655
  37,873
  40,184
  42,591
  45,100
  47,717
  50,447
  53,297
  56,273
  59,383
  62,633
  66,032
  69,587
  73,306
  77,199
  81,275
  85,544
  90,015
  94,699
  99,607
  104,752
  110,146
  115,800
  121,730
  127,948
Adjusted assets (=assets-cash), $m
  25,787
  27,610
  29,505
  31,475
  33,523
  35,655
  37,873
  40,184
  42,591
  45,100
  47,717
  50,447
  53,297
  56,273
  59,383
  62,633
  66,032
  69,587
  73,306
  77,199
  81,275
  85,544
  90,015
  94,699
  99,607
  104,752
  110,146
  115,800
  121,730
  127,948
Revenue / Adjusted assets
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
Average production assets, $m
  18,033
  19,308
  20,633
  22,010
  23,443
  24,933
  26,485
  28,101
  29,784
  31,538
  33,368
  35,277
  37,270
  39,352
  41,527
  43,800
  46,176
  48,662
  51,263
  53,986
  56,836
  59,821
  62,947
  66,223
  69,656
  73,253
  77,025
  80,979
  85,126
  89,474
Working capital, $m
  592
  633
  677
  722
  769
  818
  869
  922
  977
  1,035
  1,095
  1,157
  1,223
  1,291
  1,362
  1,437
  1,515
  1,596
  1,682
  1,771
  1,864
  1,962
  2,065
  2,172
  2,285
  2,403
  2,527
  2,656
  2,792
  2,935
Total debt, $m
  8,483
  9,560
  10,680
  11,844
  13,055
  14,315
  15,626
  16,991
  18,414
  19,897
  21,443
  23,057
  24,741
  26,500
  28,338
  30,259
  32,267
  34,368
  36,567
  38,867
  41,276
  43,799
  46,441
  49,210
  52,111
  55,151
  58,339
  61,680
  65,185
  68,860
Total liabilities, $m
  15,240
  16,317
  17,437
  18,602
  19,812
  21,072
  22,383
  23,749
  25,171
  26,654
  28,200
  29,814
  31,498
  33,257
  35,095
  37,016
  39,025
  41,126
  43,324
  45,625
  48,034
  50,556
  53,199
  55,967
  58,868
  61,909
  65,096
  68,438
  71,942
  75,617
Total equity, $m
  10,547
  11,292
  12,067
  12,873
  13,711
  14,583
  15,490
  16,435
  17,420
  18,446
  19,516
  20,633
  21,798
  23,016
  24,288
  25,617
  27,007
  28,461
  29,982
  31,575
  33,242
  34,987
  36,816
  38,732
  40,739
  42,844
  45,050
  47,362
  49,787
  52,331
Total liabilities and equity, $m
  25,787
  27,609
  29,504
  31,475
  33,523
  35,655
  37,873
  40,184
  42,591
  45,100
  47,716
  50,447
  53,296
  56,273
  59,383
  62,633
  66,032
  69,587
  73,306
  77,200
  81,276
  85,543
  90,015
  94,699
  99,607
  104,753
  110,146
  115,800
  121,729
  127,948
Debt-to-equity ratio
  0.800
  0.850
  0.890
  0.920
  0.950
  0.980
  1.010
  1.030
  1.060
  1.080
  1.100
  1.120
  1.130
  1.150
  1.170
  1.180
  1.190
  1.210
  1.220
  1.230
  1.240
  1.250
  1.260
  1.270
  1.280
  1.290
  1.290
  1.300
  1.310
  1.320
Adjusted equity ratio
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409
  0.409

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,753
  1,922
  2,099
  2,282
  2,473
  2,672
  2,879
  3,094
  3,318
  3,552
  4,729
  4,984
  5,250
  5,527
  5,817
  6,120
  6,437
  6,769
  7,116
  7,479
  7,859
  8,257
  8,675
  9,112
  9,570
  10,050
  10,553
  11,081
  11,634
  12,215
Depreciation, amort., depletion, $m
  3,082
  3,209
  3,342
  3,480
  3,623
  3,772
  3,927
  4,089
  4,257
  4,433
  3,337
  3,528
  3,727
  3,935
  4,153
  4,380
  4,618
  4,866
  5,126
  5,399
  5,684
  5,982
  6,295
  6,622
  6,966
  7,325
  7,702
  8,098
  8,513
  8,947
Funds from operations, $m
  4,835
  5,132
  5,441
  5,762
  6,096
  6,444
  6,806
  7,183
  7,575
  7,984
  8,066
  8,512
  8,977
  9,462
  9,970
  10,500
  11,055
  11,635
  12,242
  12,877
  13,543
  14,239
  14,969
  15,734
  16,535
  17,375
  18,256
  19,179
  20,147
  21,162
Change in working capital, $m
  40
  42
  43
  45
  47
  49
  51
  53
  55
  58
  60
  63
  65
  68
  71
  75
  78
  82
  85
  89
  93
  98
  103
  107
  113
  118
  124
  130
  136
  143
Cash from operations, $m
  4,794
  5,090
  5,397
  5,717
  6,049
  6,395
  6,755
  7,130
  7,520
  7,927
  8,006
  8,449
  8,911
  9,394
  9,898
  10,426
  10,977
  11,553
  12,157
  12,788
  13,449
  14,142
  14,867
  15,627
  16,423
  17,257
  18,132
  19,049
  20,011
  21,020
Maintenance CAPEX, $m
  -1,681
  -1,803
  -1,931
  -2,063
  -2,201
  -2,344
  -2,493
  -2,648
  -2,810
  -2,978
  -3,154
  -3,337
  -3,528
  -3,727
  -3,935
  -4,153
  -4,380
  -4,618
  -4,866
  -5,126
  -5,399
  -5,684
  -5,982
  -6,295
  -6,622
  -6,966
  -7,325
  -7,702
  -8,098
  -8,513
New CAPEX, $m
  -1,224
  -1,275
  -1,325
  -1,378
  -1,433
  -1,491
  -1,551
  -1,616
  -1,683
  -1,755
  -1,830
  -1,909
  -1,993
  -2,081
  -2,175
  -2,273
  -2,377
  -2,486
  -2,601
  -2,722
  -2,850
  -2,985
  -3,127
  -3,276
  -3,433
  -3,598
  -3,772
  -3,954
  -4,146
  -4,348
Cash from investing activities, $m
  -2,905
  -3,078
  -3,256
  -3,441
  -3,634
  -3,835
  -4,044
  -4,264
  -4,493
  -4,733
  -4,984
  -5,246
  -5,521
  -5,808
  -6,110
  -6,426
  -6,757
  -7,104
  -7,467
  -7,848
  -8,249
  -8,669
  -9,109
  -9,571
  -10,055
  -10,564
  -11,097
  -11,656
  -12,244
  -12,861
Free cash flow, $m
  1,889
  2,012
  2,142
  2,276
  2,416
  2,560
  2,710
  2,865
  3,027
  3,194
  3,022
  3,203
  3,390
  3,586
  3,789
  4,000
  4,220
  4,450
  4,689
  4,939
  5,200
  5,473
  5,758
  6,056
  6,368
  6,694
  7,035
  7,392
  7,767
  8,158
Issuance/(repayment) of debt, $m
  1,035
  1,077
  1,120
  1,164
  1,211
  1,260
  1,311
  1,365
  1,423
  1,483
  1,546
  1,614
  1,684
  1,759
  1,838
  1,921
  2,009
  2,101
  2,198
  2,301
  2,409
  2,523
  2,642
  2,768
  2,901
  3,041
  3,187
  3,342
  3,504
  3,675
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  
  1,035
  1,077
  1,120
  1,164
  1,211
  1,260
  1,311
  1,365
  1,423
  1,483
  1,546
  1,614
  1,684
  1,759
  1,838
  1,921
  2,009
  2,101
  2,198
  2,301
  2,409
  2,523
  2,642
  2,768
  2,901
  3,041
  3,187
  3,342
  3,504
  3,675
Total cash flow (excl. dividends), $m
  2,924
  3,089
  3,261
  3,440
  3,626
  3,820
  4,021
  4,231
  4,449
  4,677
  4,569
  4,816
  5,075
  5,345
  5,626
  5,921
  6,229
  6,551
  6,888
  7,240
  7,609
  7,996
  8,400
  8,825
  9,269
  9,734
  10,223
  10,734
  11,271
  11,834
Retained Cash Flow (-), $m
  -727
  -746
  -775
  -806
  -838
  -872
  -907
  -945
  -984
  -1,026
  -1,070
  -1,117
  -1,166
  -1,217
  -1,272
  -1,329
  -1,390
  -1,454
  -1,521
  -1,592
  -1,667
  -1,746
  -1,829
  -1,916
  -2,008
  -2,104
  -2,206
  -2,313
  -2,425
  -2,543
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
  53
  57
  61
  66
  70
  74
  79
  84
  89
  95
  100
  106
  112
  118
  125
  132
  139
  147
  154
  163
  171
  180
  190
  200
  210
  221
  233
  245
  257
  270
Cash available for distribution, $m
  2,197
  2,344
  2,486
  2,635
  2,788
  2,948
  3,114
  3,286
  3,465
  3,651
  3,499
  3,700
  3,909
  4,127
  4,355
  4,592
  4,839
  5,097
  5,366
  5,648
  5,942
  6,250
  6,572
  6,909
  7,261
  7,630
  8,017
  8,422
  8,846
  9,290
Discount rate, %
  5.90
  6.20
  6.50
  6.83
  7.17
  7.53
  7.91
  8.30
  8.72
  9.15
  9.61
  10.09
  10.60
  11.13
  11.68
  12.27
  12.88
  13.52
  14.20
  14.91
  15.65
  16.44
  17.26
  18.12
  19.03
  19.98
  20.98
  22.03
  23.13
  24.29
PV of cash for distribution, $m
  2,075
  2,078
  2,058
  2,023
  1,972
  1,907
  1,828
  1,736
  1,633
  1,521
  1,275
  1,167
  1,056
  942
  830
  721
  617
  520
  431
  351
  280
  220
  169
  127
  93
  67
  47
  32
  21
  14
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

Fresenius Medical Care AG & Co. KGaA is a kidney dialysis company. The Company provides dialysis care and related services to persons suffering from end-stage renal disease (ESRD), as well as other healthcare services. The Company's segments include North America Segment, the Europe, Middle East and Africa (EMEA) Segment, the Asia-Pacific Segment and the Latin America Segment. The Company develops and manufactures a range of dialysis machines, systems and disposable products. As of December 31, 2016, the Company sold its products to customers in more than 120 countries and also used in its internal healthcare service operations. The Company's Care Coordination services include coordinated delivery of pharmacy services, vascular, cardiovascular and endovascular specialty services, non-dialysis laboratory testing services, physician services, hospitalist and intensivist services, health plan services, ambulatory surgery center services and urgent care services.

FINANCIAL RATIOS  of  Fresenius Medical Care ADR (FMS)

Valuation Ratios
P/E Ratio 13.5
Price to Sales 0.9
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 31.6
Growth Rates
Sales Growth Rate 7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 26.6%
Cap. Spend. - 3 Yr. Gr. Rate 5.3%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 66.6%
Total Debt to Equity 79.3%
Interest Coverage 7
Management Effectiveness
Return On Assets 5.8%
Ret/ On Assets - 3 Yr. Avg. 5.1%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 5.9%
Return On Equity 12%
Return On Equity - 3 Yr. Avg. 11.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 32.3%
Gross Margin - 3 Yr. Avg. 31.9%
EBITDA Margin 19%
EBITDA Margin - 3 Yr. Avg. 17.7%
Operating Margin 14.7%
Oper. Margin - 3 Yr. Avg. 14.3%
Pre-Tax Margin 12.5%
Pre-Tax Margin - 3 Yr. Avg. 11.9%
Net Profit Margin 6.9%
Net Profit Margin - 3 Yr. Avg. 6.6%
Effective Tax Rate 30.6%
Eff/ Tax Rate - 3 Yr. Avg. 31.5%
Payout Ratio 22.3%

FMS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FMS stock intrinsic value calculation we used $17784 million for the last fiscal year's total revenue generated by Fresenius Medical Care ADR. The default revenue input number comes from 2017 income statement of Fresenius Medical Care 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 FMS stock valuation model: a) initial revenue growth rate of 7.3% 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 5.9%, whose default value for FMS is calculated based on our internal credit rating of Fresenius Medical Care 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 Fresenius Medical Care 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 FMS stock the variable cost ratio is equal to 85.8%.

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 FMS 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 Fresenius Medical Care ADR.

Corporate tax rate of 27% is the nominal tax rate for Fresenius Medical Care 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 FMS stock is equal to 0.3%.

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 FMS are equal to 94.5%.

Life of production assets of 10 years is the average useful life of capital assets used in Fresenius Medical Care 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 FMS is equal to 3.1%. 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 - $9820 million for Fresenius Medical Care 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 306 million for Fresenius Medical Care 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 Fresenius Medical Care ADR at the current share price and the inputted number of shares is $15.2 billion.

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COMPANY NEWS

▶ The Picture for Cara Therapeutics Just Got Clearer   [Jul-17-18 02:22PM  Motley Fool]
▶ [$$] Fresenius Medical Sells Sound Inpatient Physicians for $2.15 Billion   [Jun-28-18 05:22PM  The Wall Street Journal]
▶ Durhams Humacyte lands $150M from Fresenius Medical Care   [08:01AM  American City Business Journals]
▶ Why Cara Therapeutics Shares Jumped 10% Today   [May-25-18 03:57PM  Motley Fool]
▶ Here's Why Akorn Inc Fell as Much as 16.4% Today   [May-02-18 03:34PM  Motley Fool]
▶ Why Akorn, Inc.'s Stock Is Up Big Today   [Apr-27-18 04:07PM  Motley Fool]
▶ [$$] Fresenius Medical Sells Sound Inpatient   [01:58AM  The Wall Street Journal]
▶ Fresenius Medical Shows Market Leadership With Jump To 82 RS Rating   [Jan-09-18 03:00AM  Investor's Business Daily]
▶ Fresenius Medical Getting Closer To Key Technical Benchmark   [Dec-26-17 03:00AM  Investor's Business Daily]
▶ Fresenius Medical Earns RS Rating Upgrade   [Dec-05-17 03:00AM  Investor's Business Daily]
▶ NxStage Medical Prepares for Fresenius Merger   [Nov-21-17 12:45PM  Motley Fool]
▶ Fresenius posts 3Q profit   [Nov-03-17 03:53PM  Associated Press]
▶ Like Mother Like Daughter   [Sep-13-17 04:11PM  Business Wire]
▶ [$$] Fresenius Unit Buys NxStage Medical in $2 Billion Dialysis Deal   [Aug-08-17 12:37AM  The Wall Street Journal]
▶ Buyout Bid Overshadows NxStage Medical's Losses   [Aug-07-17 05:31PM  Motley Fool]
▶ Fresenius to buy Lawrence-based NxStage Medical for $2B   [03:11PM  American City Business Journals]
▶ Fresenius Pays an Arm, and Maybe a Leg   [06:29AM  Bloomberg]
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