Intrinsic value of Fresenius Medical Care ADR - FMS

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$53.47

  Intrinsic Value

$72.47

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  Rating & Target

buy

+36%

Previous close

$53.47

 
Intrinsic value

$72.47

 
Up/down potential

+36%

 
Rating

buy

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

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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Fresenius Medical Care ADR (FMS) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  7.01
  9.90
  9.41
  8.97
  8.57
  8.21
  7.89
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.25
  6.12
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
Revenue, $m
  16,218
  17,824
  19,501
  21,250
  23,071
  24,967
  26,937
  28,986
  31,114
  33,326
  35,625
  38,015
  40,501
  43,086
  45,777
  48,579
  51,498
  54,541
  57,713
  61,023
  64,478
  68,086
  71,856
  75,795
  79,914
  84,222
  88,730
  93,447
  98,386
  103,557
  108,974
Variable operating expenses, $m
 
  12,978
  14,083
  15,235
  16,435
  17,683
  18,981
  20,330
  21,732
  23,189
  24,704
  25,040
  26,678
  28,381
  30,153
  31,999
  33,922
  35,926
  38,015
  40,196
  42,472
  44,848
  47,331
  49,926
  52,639
  55,477
  58,446
  61,553
  64,806
  68,213
  71,781
Fixed operating expenses, $m
 
  2,000
  2,050
  2,101
  2,154
  2,207
  2,263
  2,319
  2,377
  2,437
  2,497
  2,560
  2,624
  2,689
  2,757
  2,826
  2,896
  2,969
  3,043
  3,119
  3,197
  3,277
  3,359
  3,443
  3,529
  3,617
  3,707
  3,800
  3,895
  3,993
  4,092
Total operating expenses, $m
  13,830
  14,978
  16,133
  17,336
  18,589
  19,890
  21,244
  22,649
  24,109
  25,626
  27,201
  27,600
  29,302
  31,070
  32,910
  34,825
  36,818
  38,895
  41,058
  43,315
  45,669
  48,125
  50,690
  53,369
  56,168
  59,094
  62,153
  65,353
  68,701
  72,206
  75,873
Operating income, $m
  2,388
  2,846
  3,368
  3,914
  4,483
  5,076
  5,694
  6,336
  7,005
  7,700
  8,424
  10,415
  11,199
  12,016
  12,867
  13,755
  14,680
  15,646
  16,655
  17,709
  18,810
  19,961
  21,166
  22,427
  23,746
  25,128
  26,576
  28,094
  29,684
  31,352
  33,101
EBITDA, $m
  3,091
  4,214
  4,749
  5,308
  5,890
  6,497
  7,129
  7,787
  8,471
  9,183
  9,923
  10,694
  11,497
  12,332
  13,203
  14,111
  15,058
  16,047
  17,079
  18,157
  19,283
  20,461
  21,694
  22,983
  24,333
  25,747
  27,228
  28,780
  30,407
  32,112
  33,901
Interest expense (income), $m
  351
  307
  369
  433
  499
  568
  640
  715
  793
  874
  957
  1,045
  1,136
  1,230
  1,328
  1,430
  1,537
  1,647
  1,763
  1,883
  2,009
  2,140
  2,277
  2,420
  2,570
  2,726
  2,890
  3,061
  3,240
  3,428
  3,624
Earnings before tax, $m
  2,021
  2,539
  3,000
  3,482
  3,984
  4,508
  5,054
  5,621
  6,212
  6,827
  7,467
  9,370
  10,064
  10,786
  11,539
  12,324
  13,144
  13,999
  14,892
  15,825
  16,801
  17,821
  18,889
  20,006
  21,176
  22,402
  23,687
  25,033
  26,444
  27,924
  29,477
Tax expense, $m
  619
  685
  810
  940
  1,076
  1,217
  1,364
  1,518
  1,677
  1,843
  2,016
  2,530
  2,717
  2,912
  3,116
  3,328
  3,549
  3,780
  4,021
  4,273
  4,536
  4,812
  5,100
  5,402
  5,718
  6,049
  6,395
  6,759
  7,140
  7,540
  7,959
Net income, $m
  1,126
  1,853
  2,190
  2,542
  2,909
  3,291
  3,689
  4,104
  4,535
  4,984
  5,451
  6,840
  7,346
  7,874
  8,424
  8,997
  9,595
  10,219
  10,871
  11,552
  12,265
  13,009
  13,789
  14,605
  15,459
  16,354
  17,291
  18,274
  19,304
  20,385
  21,518

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  930
  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
  24,388
  25,794
  28,221
  30,752
  33,388
  36,131
  38,983
  41,947
  45,028
  48,229
  51,556
  55,015
  58,611
  62,353
  66,247
  70,302
  74,527
  78,930
  83,521
  88,312
  93,312
  98,533
  103,988
  109,689
  115,650
  121,885
  128,408
  135,235
  142,382
  149,866
  157,705
Adjusted assets (=assets-cash), $m
  23,458
  25,794
  28,221
  30,752
  33,388
  36,131
  38,983
  41,947
  45,028
  48,229
  51,556
  55,015
  58,611
  62,353
  66,247
  70,302
  74,527
  78,930
  83,521
  88,312
  93,312
  98,533
  103,988
  109,689
  115,650
  121,885
  128,408
  135,235
  142,382
  149,866
  157,705
Revenue / Adjusted assets
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
Average production assets, $m
  2,468
  2,709
  2,964
  3,230
  3,507
  3,795
  4,094
  4,406
  4,729
  5,066
  5,415
  5,778
  6,156
  6,549
  6,958
  7,384
  7,828
  8,290
  8,772
  9,276
  9,801
  10,349
  10,922
  11,521
  12,147
  12,802
  13,487
  14,204
  14,955
  15,741
  16,564
Working capital, $m
  2,062
  2,602
  2,847
  3,102
  3,368
  3,645
  3,933
  4,232
  4,543
  4,866
  5,201
  5,550
  5,913
  6,291
  6,683
  7,093
  7,519
  7,963
  8,426
  8,909
  9,414
  9,941
  10,491
  11,066
  11,667
  12,296
  12,955
  13,643
  14,364
  15,119
  15,910
Total debt, $m
  7,761
  8,198
  9,613
  11,089
  12,625
  14,224
  15,887
  17,615
  19,411
  21,278
  23,217
  25,234
  27,330
  29,512
  31,782
  34,146
  36,609
  39,176
  41,853
  44,646
  47,561
  50,605
  53,785
  57,109
  60,584
  64,219
  68,022
  72,002
  76,169
  80,532
  85,102
Total liabilities, $m
  14,601
  15,038
  16,453
  17,929
  19,465
  21,064
  22,727
  24,455
  26,251
  28,118
  30,057
  32,074
  34,170
  36,352
  38,622
  40,986
  43,449
  46,016
  48,693
  51,486
  54,401
  57,445
  60,625
  63,949
  67,424
  71,059
  74,862
  78,842
  83,009
  87,372
  91,942
Total equity, $m
  9,787
  10,756
  11,768
  12,824
  13,923
  15,067
  16,256
  17,492
  18,777
  20,112
  21,499
  22,941
  24,441
  26,001
  27,625
  29,316
  31,078
  32,914
  34,828
  36,826
  38,911
  41,088
  43,363
  45,740
  48,226
  50,826
  53,546
  56,393
  59,373
  62,494
  65,763
Total liabilities and equity, $m
  24,388
  25,794
  28,221
  30,753
  33,388
  36,131
  38,983
  41,947
  45,028
  48,230
  51,556
  55,015
  58,611
  62,353
  66,247
  70,302
  74,527
  78,930
  83,521
  88,312
  93,312
  98,533
  103,988
  109,689
  115,650
  121,885
  128,408
  135,235
  142,382
  149,866
  157,705
Debt-to-equity ratio
  0.793
  0.760
  0.820
  0.860
  0.910
  0.940
  0.980
  1.010
  1.030
  1.060
  1.080
  1.100
  1.120
  1.140
  1.150
  1.160
  1.180
  1.190
  1.200
  1.210
  1.220
  1.230
  1.240
  1.250
  1.260
  1.260
  1.270
  1.280
  1.280
  1.290
  1.290
Adjusted equity ratio
  0.401
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,126
  1,853
  2,190
  2,542
  2,909
  3,291
  3,689
  4,104
  4,535
  4,984
  5,451
  6,840
  7,346
  7,874
  8,424
  8,997
  9,595
  10,219
  10,871
  11,552
  12,265
  13,009
  13,789
  14,605
  15,459
  16,354
  17,291
  18,274
  19,304
  20,385
  21,518
Depreciation, amort., depletion, $m
  703
  1,368
  1,381
  1,394
  1,407
  1,421
  1,435
  1,450
  1,466
  1,482
  1,499
  279
  297
  316
  336
  357
  378
  400
  424
  448
  473
  500
  528
  557
  587
  618
  652
  686
  722
  760
  800
Funds from operations, $m
  1,804
  3,222
  3,570
  3,935
  4,315
  4,712
  5,124
  5,554
  6,001
  6,466
  6,950
  7,119
  7,644
  8,190
  8,760
  9,354
  9,973
  10,620
  11,295
  12,000
  12,738
  13,509
  14,316
  15,161
  16,046
  16,972
  17,943
  18,960
  20,027
  21,145
  22,318
Change in working capital, $m
  -134
  234
  245
  255
  266
  277
  288
  299
  311
  323
  336
  349
  363
  377
  393
  409
  426
  444
  463
  483
  504
  527
  550
  575
  601
  629
  658
  689
  721
  755
  791
Cash from operations, $m
  1,938
  2,987
  3,325
  3,680
  4,050
  4,435
  4,837
  5,255
  5,690
  6,143
  6,614
  6,770
  7,281
  7,813
  8,367
  8,944
  9,547
  10,175
  10,832
  11,517
  12,234
  12,983
  13,766
  14,586
  15,444
  16,343
  17,285
  18,271
  19,306
  20,390
  21,528
Maintenance CAPEX, $m
  0
  -119
  -131
  -143
  -156
  -169
  -183
  -198
  -213
  -228
  -245
  -262
  -279
  -297
  -316
  -336
  -357
  -378
  -400
  -424
  -448
  -473
  -500
  -528
  -557
  -587
  -618
  -652
  -686
  -722
  -760
New CAPEX, $m
  -1,456
  -241
  -255
  -266
  -277
  -288
  -300
  -311
  -324
  -336
  -349
  -363
  -378
  -393
  -409
  -426
  -444
  -462
  -482
  -503
  -525
  -548
  -573
  -599
  -626
  -655
  -685
  -717
  -751
  -786
  -823
Cash from investing activities, $m
  -1,249
  -360
  -386
  -409
  -433
  -457
  -483
  -509
  -537
  -564
  -594
  -625
  -657
  -690
  -725
  -762
  -801
  -840
  -882
  -927
  -973
  -1,021
  -1,073
  -1,127
  -1,183
  -1,242
  -1,303
  -1,369
  -1,437
  -1,508
  -1,583
Free cash flow, $m
  689
  2,627
  2,940
  3,271
  3,617
  3,978
  4,354
  4,746
  5,154
  5,578
  6,020
  6,146
  6,624
  7,122
  7,641
  8,182
  8,746
  9,335
  9,949
  10,590
  11,260
  11,961
  12,693
  13,459
  14,262
  15,101
  15,981
  16,903
  17,869
  18,882
  19,944
Issuance/(repayment) of debt, $m
  -212
  1,367
  1,415
  1,476
  1,537
  1,599
  1,663
  1,728
  1,796
  1,866
  1,940
  2,016
  2,097
  2,181
  2,270
  2,364
  2,463
  2,567
  2,677
  2,793
  2,915
  3,044
  3,180
  3,324
  3,475
  3,635
  3,803
  3,980
  4,167
  4,363
  4,570
Issuance/(repurchase) of shares, $m
  44
  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  
  -278
  1,367
  1,415
  1,476
  1,537
  1,599
  1,663
  1,728
  1,796
  1,866
  1,940
  2,016
  2,097
  2,181
  2,270
  2,364
  2,463
  2,567
  2,677
  2,793
  2,915
  3,044
  3,180
  3,324
  3,475
  3,635
  3,803
  3,980
  4,167
  4,363
  4,570
Total cash flow (excl. dividends), $m
  430
  3,994
  4,355
  4,746
  5,153
  5,577
  6,017
  6,474
  6,950
  7,444
  7,960
  8,162
  8,721
  9,304
  9,912
  10,546
  11,209
  11,902
  12,626
  13,383
  14,175
  15,005
  15,873
  16,783
  17,737
  18,736
  19,784
  20,883
  22,036
  23,245
  24,514
Retained Cash Flow (-), $m
  -834
  -969
  -1,012
  -1,055
  -1,099
  -1,144
  -1,189
  -1,236
  -1,285
  -1,335
  -1,387
  -1,442
  -1,500
  -1,560
  -1,624
  -1,691
  -1,762
  -1,836
  -1,915
  -1,998
  -2,085
  -2,177
  -2,275
  -2,377
  -2,486
  -2,600
  -2,720
  -2,847
  -2,980
  -3,121
  -3,269
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
 
  3,025
  3,343
  3,691
  4,054
  4,433
  4,827
  5,238
  5,665
  6,110
  6,572
  6,720
  7,221
  7,743
  8,288
  8,856
  9,448
  10,066
  10,711
  11,385
  12,090
  12,827
  13,599
  14,406
  15,251
  16,136
  17,064
  18,036
  19,055
  20,124
  21,245
Discount rate, %
 
  6.40
  6.72
  7.06
  7.41
  7.78
  8.17
  8.58
  9.01
  9.46
  9.93
  10.42
  10.95
  11.49
  12.07
  12.67
  13.31
  13.97
  14.67
  15.40
  16.17
  16.98
  17.83
  18.72
  19.66
  20.64
  21.67
  22.76
  23.89
  25.09
  26.34
PV of cash for distribution, $m
 
  2,843
  2,935
  3,008
  3,046
  3,048
  3,014
  2,944
  2,842
  2,709
  2,550
  2,257
  2,076
  1,882
  1,681
  1,479
  1,280
  1,090
  912
  749
  603
  476
  368
  278
  205
  148
  104
  71
  47
  31
  19
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

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 14.5
Price to Sales 1
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 8.4
Price to Free Cash Flow 34
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 $16218 million for the last fiscal year's total revenue generated by Fresenius Medical Care ADR. The default revenue input number comes from 2016 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 9.9% 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 6.4%, 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 73.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1951 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 4.5% 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%.

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 15.2%.

Life of production assets of 20.7 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 14.6%. 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 - $9787 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 617.127 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 $33.0 billion.

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COMPANY NEWS

▶ 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]
▶ [$$] Fresenius Unit Buys NxStage Medical in $2 Billion Dialysis Deal   [Aug-08-17 12:37AM  The Wall Street Journal]
▶ Buyout Bid Overshadows NxStage Medical's Losses   [Aug-07-17 05:31PM  Motley Fool]
▶ Fresenius to buy Lawrence-based NxStage Medical for $2B   [03:11PM  American City Business Journals]
▶ Fresenius Pays an Arm, and Maybe a Leg   [06:29AM  Bloomberg]
▶ [$$] U.S. Charges Four With Trading Insider Tips on Health-Care Policy   [May-24-17 07:44PM  The Wall Street Journal]
▶ Fresenius beats Street 1Q forecasts   [May-03-17 05:02AM  Associated Press]
▶ [$$] Revelstoke Capital Adds Operating Partner to Team   [May-02-17 12:03PM  The Wall Street Journal]
▶ Fresenius Buys Akorn -- What Now?   [09:29AM  Motley Fool]
▶ Akorn Launches To Six-Month High On Fresenius Takeover Rumor   [Apr-07-17 04:39PM  Investor's Business Daily]
▶ Fresenius Medical Care misses 4Q revenue forecasts   [Feb-22-17 05:07PM  Associated Press]
Financial statements of FMS
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