Intrinsic value of Grifols ADR - GRFS

Previous Close

$21.15

  Intrinsic Value

$45.08

stock screener

  Rating & Target

str. buy

+113%

Previous close

$21.15

 
Intrinsic value

$45.08

 
Up/down potential

+113%

 
Rating

str. buy

We calculate the intrinsic value of GRFS 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 9.0

 

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, %
  21.60
  19.94
  18.45
  17.10
  15.89
  14.80
  13.82
  12.94
  12.15
  11.43
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.63
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
Revenue, $m
  6,303
  7,560
  8,955
  10,486
  12,153
  13,952
  15,880
  17,935
  20,113
  22,412
  24,830
  27,365
  30,016
  32,784
  35,668
  38,670
  41,793
  45,040
  48,414
  51,921
  55,565
  59,352
  63,290
  67,386
  71,647
  76,083
  80,704
  85,518
  90,537
  95,771
Variable operating expenses, $m
  4,676
  5,469
  6,348
  7,313
  8,363
  9,497
  10,713
  12,008
  13,381
  14,830
  15,650
  17,248
  18,919
  20,663
  22,481
  24,374
  26,342
  28,389
  30,515
  32,725
  35,022
  37,409
  39,891
  42,473
  45,159
  47,955
  50,867
  53,901
  57,065
  60,364
Fixed operating expenses, $m
  10
  10
  11
  11
  11
  11
  12
  12
  12
  12
  13
  13
  13
  14
  14
  14
  14
  15
  15
  15
  16
  16
  16
  17
  17
  18
  18
  18
  19
  19
Total operating expenses, $m
  4,686
  5,479
  6,359
  7,324
  8,374
  9,508
  10,725
  12,020
  13,393
  14,842
  15,663
  17,261
  18,932
  20,677
  22,495
  24,388
  26,356
  28,404
  30,530
  32,740
  35,038
  37,425
  39,907
  42,490
  45,176
  47,973
  50,885
  53,919
  57,084
  60,383
Operating income, $m
  1,617
  2,081
  2,597
  3,162
  3,778
  4,443
  5,156
  5,915
  6,720
  7,570
  9,167
  10,104
  11,084
  12,107
  13,173
  14,282
  15,437
  16,637
  17,884
  19,180
  20,527
  21,927
  23,382
  24,896
  26,471
  28,111
  29,819
  31,598
  33,453
  35,388
EBITDA, $m
  2,524
  3,030
  3,590
  4,206
  4,876
  5,599
  6,374
  7,200
  8,075
  9,000
  9,972
  10,991
  12,056
  13,169
  14,328
  15,535
  16,791
  18,096
  19,453
  20,862
  22,327
  23,850
  25,433
  27,079
  28,792
  30,576
  32,433
  34,369
  36,386
  38,491
Interest expense (income), $m
  0
  393
  494
  607
  733
  871
  1,022
  1,184
  1,358
  1,543
  1,740
  1,947
  2,165
  2,394
  2,633
  2,883
  3,143
  3,414
  3,696
  3,989
  4,293
  4,610
  4,939
  5,280
  5,636
  6,005
  6,390
  6,790
  7,207
  7,641
  8,094
Earnings before tax, $m
  1,224
  1,587
  1,989
  2,429
  2,907
  3,422
  3,972
  4,557
  5,177
  5,830
  7,220
  7,939
  8,690
  9,473
  10,290
  11,139
  12,023
  12,941
  13,895
  14,887
  15,917
  16,988
  18,102
  19,260
  20,466
  21,721
  23,029
  24,391
  25,812
  27,294
Tax expense, $m
  330
  429
  537
  656
  785
  924
  1,072
  1,230
  1,398
  1,574
  1,949
  2,143
  2,346
  2,558
  2,778
  3,008
  3,246
  3,494
  3,752
  4,019
  4,298
  4,587
  4,888
  5,200
  5,526
  5,865
  6,218
  6,586
  6,969
  7,369
Net income, $m
  893
  1,159
  1,452
  1,773
  2,122
  2,498
  2,899
  3,327
  3,779
  4,256
  5,270
  5,795
  6,344
  6,916
  7,511
  8,132
  8,776
  9,447
  10,143
  10,867
  11,619
  12,401
  13,214
  14,060
  14,940
  15,856
  16,811
  17,806
  18,843
  19,925

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
  15,838
  18,996
  22,500
  26,348
  30,535
  35,054
  39,900
  45,063
  50,536
  56,313
  62,388
  68,757
  75,418
  82,371
  89,618
  97,162
  105,009
  113,166
  121,644
  130,454
  139,610
  149,126
  159,020
  169,311
  180,018
  191,164
  202,773
  214,869
  227,479
  240,631
Adjusted assets (=assets-cash), $m
  15,838
  18,996
  22,500
  26,348
  30,535
  35,054
  39,900
  45,063
  50,536
  56,313
  62,388
  68,757
  75,418
  82,371
  89,618
  97,162
  105,009
  113,166
  121,644
  130,454
  139,610
  149,126
  159,020
  169,311
  180,018
  191,164
  202,773
  214,869
  227,479
  240,631
Revenue / Adjusted assets
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
Average production assets, $m
  6,127
  7,349
  8,704
  10,193
  11,813
  13,561
  15,435
  17,433
  19,550
  21,785
  24,135
  26,599
  29,176
  31,866
  34,669
  37,588
  40,623
  43,779
  47,059
  50,467
  54,009
  57,690
  61,518
  65,499
  69,641
  73,953
  78,444
  83,123
  88,002
  93,090
Working capital, $m
  1,790
  2,147
  2,543
  2,978
  3,451
  3,962
  4,510
  5,094
  5,712
  6,365
  7,052
  7,772
  8,525
  9,311
  10,130
  10,982
  11,869
  12,791
  13,750
  14,745
  15,780
  16,856
  17,974
  19,138
  20,348
  21,608
  22,920
  24,287
  25,712
  27,199
Total debt, $m
  9,146
  11,246
  13,576
  16,135
  18,919
  21,925
  25,147
  28,580
  32,220
  36,061
  40,101
  44,337
  48,767
  53,390
  58,209
  63,226
  68,444
  73,869
  79,507
  85,365
  91,454
  97,782
  104,362
  111,205
  118,325
  125,738
  133,457
  141,501
  149,887
  158,633
Total liabilities, $m
  10,532
  12,632
  14,962
  17,521
  20,306
  23,311
  26,533
  29,967
  33,606
  37,448
  41,488
  45,723
  50,153
  54,777
  59,596
  64,613
  69,831
  75,256
  80,893
  86,752
  92,840
  99,169
  105,748
  112,592
  119,712
  127,124
  134,844
  142,888
  151,273
  160,020
Total equity, $m
  5,306
  6,364
  7,537
  8,826
  10,229
  11,743
  13,366
  15,096
  16,929
  18,865
  20,900
  23,034
  25,265
  27,594
  30,022
  32,549
  35,178
  37,911
  40,751
  43,702
  46,769
  49,957
  53,272
  56,719
  60,306
  64,040
  67,929
  71,981
  76,205
  80,612
Total liabilities and equity, $m
  15,838
  18,996
  22,499
  26,347
  30,535
  35,054
  39,899
  45,063
  50,535
  56,313
  62,388
  68,757
  75,418
  82,371
  89,618
  97,162
  105,009
  113,167
  121,644
  130,454
  139,609
  149,126
  159,020
  169,311
  180,018
  191,164
  202,773
  214,869
  227,478
  240,632
Debt-to-equity ratio
  1.720
  1.770
  1.800
  1.830
  1.850
  1.870
  1.880
  1.890
  1.900
  1.910
  1.920
  1.920
  1.930
  1.930
  1.940
  1.940
  1.950
  1.950
  1.950
  1.950
  1.960
  1.960
  1.960
  1.960
  1.960
  1.960
  1.960
  1.970
  1.970
  1.970
Adjusted equity ratio
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335
  0.335

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  893
  1,159
  1,452
  1,773
  2,122
  2,498
  2,899
  3,327
  3,779
  4,256
  5,270
  5,795
  6,344
  6,916
  7,511
  8,132
  8,776
  9,447
  10,143
  10,867
  11,619
  12,401
  13,214
  14,060
  14,940
  15,856
  16,811
  17,806
  18,843
  19,925
Depreciation, amort., depletion, $m
  908
  948
  994
  1,043
  1,097
  1,155
  1,218
  1,285
  1,355
  1,430
  804
  887
  973
  1,062
  1,156
  1,253
  1,354
  1,459
  1,569
  1,682
  1,800
  1,923
  2,051
  2,183
  2,321
  2,465
  2,615
  2,771
  2,933
  3,103
Funds from operations, $m
  1,801
  2,107
  2,446
  2,817
  3,219
  3,653
  4,117
  4,611
  5,134
  5,686
  6,075
  6,682
  7,316
  7,978
  8,667
  9,385
  10,131
  10,906
  11,712
  12,549
  13,420
  14,324
  15,265
  16,243
  17,262
  18,322
  19,426
  20,576
  21,776
  23,028
Change in working capital, $m
  318
  357
  396
  435
  473
  511
  548
  584
  619
  653
  687
  720
  753
  786
  819
  853
  887
  922
  958
  996
  1,035
  1,076
  1,118
  1,163
  1,210
  1,260
  1,312
  1,367
  1,425
  1,487
Cash from operations, $m
  1,483
  1,750
  2,050
  2,382
  2,746
  3,142
  3,570
  4,028
  4,516
  5,033
  5,388
  5,962
  6,563
  7,192
  7,848
  8,532
  9,244
  9,984
  10,754
  11,554
  12,385
  13,249
  14,147
  15,080
  16,051
  17,062
  18,114
  19,209
  20,351
  21,541
Maintenance CAPEX, $m
  -168
  -204
  -245
  -290
  -340
  -394
  -452
  -515
  -581
  -652
  -726
  -804
  -887
  -973
  -1,062
  -1,156
  -1,253
  -1,354
  -1,459
  -1,569
  -1,682
  -1,800
  -1,923
  -2,051
  -2,183
  -2,321
  -2,465
  -2,615
  -2,771
  -2,933
New CAPEX, $m
  -1,086
  -1,222
  -1,356
  -1,489
  -1,620
  -1,749
  -1,874
  -1,997
  -2,117
  -2,235
  -2,350
  -2,464
  -2,577
  -2,690
  -2,803
  -2,918
  -3,036
  -3,156
  -3,280
  -3,408
  -3,542
  -3,681
  -3,828
  -3,981
  -4,142
  -4,312
  -4,491
  -4,679
  -4,878
  -5,088
Cash from investing activities, $m
  -1,254
  -1,426
  -1,601
  -1,779
  -1,960
  -2,143
  -2,326
  -2,512
  -2,698
  -2,887
  -3,076
  -3,268
  -3,464
  -3,663
  -3,865
  -4,074
  -4,289
  -4,510
  -4,739
  -4,977
  -5,224
  -5,481
  -5,751
  -6,032
  -6,325
  -6,633
  -6,956
  -7,294
  -7,649
  -8,021
Free cash flow, $m
  229
  324
  449
  603
  787
  1,000
  1,243
  1,516
  1,817
  2,146
  2,312
  2,693
  3,099
  3,529
  3,982
  4,458
  4,955
  5,474
  6,015
  6,577
  7,161
  7,767
  8,396
  9,049
  9,726
  10,428
  11,158
  11,915
  12,702
  13,519
Issuance/(repayment) of debt, $m
  1,868
  2,100
  2,330
  2,559
  2,784
  3,006
  3,222
  3,433
  3,640
  3,842
  4,040
  4,236
  4,430
  4,624
  4,819
  5,017
  5,218
  5,425
  5,638
  5,859
  6,088
  6,328
  6,580
  6,843
  7,120
  7,412
  7,720
  8,044
  8,386
  8,746
Issuance/(repurchase) of shares, $m
  56
  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  
  1,924
  2,100
  2,330
  2,559
  2,784
  3,006
  3,222
  3,433
  3,640
  3,842
  4,040
  4,236
  4,430
  4,624
  4,819
  5,017
  5,218
  5,425
  5,638
  5,859
  6,088
  6,328
  6,580
  6,843
  7,120
  7,412
  7,720
  8,044
  8,386
  8,746
Total cash flow (excl. dividends), $m
  2,153
  2,424
  2,779
  3,162
  3,571
  4,006
  4,465
  4,949
  5,457
  5,988
  6,352
  6,929
  7,529
  8,153
  8,801
  9,474
  10,173
  10,899
  11,652
  12,435
  13,249
  14,095
  14,976
  15,892
  16,846
  17,841
  18,877
  19,959
  21,087
  22,266
Retained Cash Flow (-), $m
  -949
  -1,058
  -1,174
  -1,289
  -1,403
  -1,514
  -1,623
  -1,730
  -1,834
  -1,935
  -2,035
  -2,134
  -2,232
  -2,329
  -2,428
  -2,527
  -2,629
  -2,733
  -2,840
  -2,951
  -3,067
  -3,188
  -3,315
  -3,447
  -3,587
  -3,734
  -3,889
  -4,052
  -4,224
  -4,406
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
  1,204
  1,366
  1,606
  1,873
  2,168
  2,492
  2,842
  3,220
  3,623
  4,053
  4,317
  4,795
  5,298
  5,824
  6,374
  6,947
  7,545
  8,166
  8,812
  9,484
  10,182
  10,907
  11,661
  12,445
  13,259
  14,107
  14,988
  15,907
  16,863
  17,860
Discount rate, %
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
  1,112
  1,156
  1,235
  1,298
  1,341
  1,362
  1,358
  1,331
  1,279
  1,207
  1,070
  975
  870
  761
  650
  544
  445
  355
  277
  210
  156
  112
  79
  53
  35
  23
  14
  8
  5
  3
Current shareholders' claim on cash, %
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4
  99.4

Grifols, S.A., a biopharmaceutical company, develops, manufactures, and distributes plasma derivative products in the United States, Canada, Spain, rest of the European Union, and internationally. It specializes in providing infusion solutions, nutrition products, medical devices, diagnostic instrumentation, and reagents for use in hospitals and clinics. The company operates through four segments: Bioscience, Diagnostic, Hospital, and Raw Materials and Others. The Bioscience segment manufactures plasma derivatives for therapeutic use, including the reception, analysis, quarantine, classification, fractionation, and purification of plasma; and sells and distributes end products. It offers plasma products, which include IVIG, Factor VIII, A1PI, and albumin; and intramuscular immunoglobulins, ATIII, Factor IX, and plasma thromboplastin components. The Diagnostic segment focuses on researching, developing, manufacturing, and marketing in vitro diagnostics products, including analytical instruments, reagents, software, and related products for use in clinical and blood bank laboratories. It serves blood donation centers, clinical analysis laboratories, and hospital immunohematology services. The Hospital segment manufactures and installs products used by and in hospitals, such as parenteral solutions, and enteral and parenteral nutritional fluids. The Raw Materials and Others segment sells intermediate biological products; and renders manufacturing services to third party companies. The company also offers engineering services. Its products and services are used by healthcare providers to diagnose and treat patients with hemophilia, immune deficiencies, infectious diseases, and other medical conditions. The company serves hospitals and clinics, group purchasing organizations, governments, and other distributors through sales representatives, marketing partners, and third-party distributors. Grifols, S.A. was founded in 1940 and is headquartered in Barcelona, Spain.

FINANCIAL RATIOS  of  Grifols ADR (GRFS)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

GRFS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GRFS stock intrinsic value calculation we used $5183.76110444 million for the last fiscal year's total revenue generated by Grifols ADR. The default revenue input number comes from 0001 income statement of Grifols 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 GRFS stock valuation model: a) initial revenue growth rate of 21.6% 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 8.3%, whose default value for GRFS is calculated based on our internal credit rating of Grifols 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 Grifols 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 GRFS stock the variable cost ratio is equal to 76.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $10 million in the base year in the intrinsic value calculation for GRFS 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 Grifols ADR.

Corporate tax rate of 27% is the nominal tax rate for Grifols 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 GRFS 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 GRFS are equal to 97.2%.

Life of production assets of 31.2 years is the average useful life of capital assets used in Grifols 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 GRFS is equal to 28.4%. 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 - $4356.63745498 million for Grifols 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 426.13 million for Grifols 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 Grifols ADR at the current share price and the inputted number of shares is $9.0 billion.

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COMPANY NEWS

▶ Who Owns Grifols SA (BME:GRF)?   [Sep-11-18 07:34AM  Simply Wall St.]
▶ Grifols: Just-approved medicine will only be manufactured in Clayton   [Sep-07-18 01:30PM  American City Business Journals]
▶ What is Behind Grifols SAs (BME:GRF) Superior ROE?   [Jun-27-18 02:23AM  Simply Wall St.]
▶ 2 Stable and 2 Speculative Biotech Stocks to Buy   [Jun-15-18 02:39PM  InvestorPlace]
▶ Biotech and energy top list for best paying jobs   [May-25-18 01:46PM  Yahoo Finance Video]
▶ Grifols, Novo expansions prompt $1.3M renovation of JoCo training center   [Apr-27-18 02:43PM  American City Business Journals]
▶ Estimating The Fair Value Of Grifols SA. (BME:GRF)   [Mar-29-18 08:59AM  Simply Wall St.]
▶ Can Grifols SA. (BME:GRF) Continue To Outperform Its Industry?   [Mar-15-18 06:50AM  Simply Wall St.]
▶ Grifols breaks ground on $120M Clayton facility   [Mar-14-18 02:50PM  American City Business Journals]
▶ Stocks With Rising Relative Price Strength: Grifols   [Jan-03-18 03:00AM  Investor's Business Daily]
▶ ETFs with exposure to Grifols SA : December 19, 2017   [Dec-19-17 01:09PM  Capital Cube]
▶ ETFs with exposure to Grifols SA : December 5, 2017   [Dec-05-17 12:54PM  Capital Cube]
▶ ETFs with exposure to Grifols SA : November 16, 2017   [Nov-16-17 11:39AM  Capital Cube]
▶ ETFs with exposure to Grifols SA : November 2, 2017   [Nov-02-17 12:11PM  Capital Cube]
▶ Stocks Showing Rising Market Leadership: Grifols Earns 83 RS Rating   [Oct-31-17 03:00AM  Investor's Business Daily]
▶ ETFs with exposure to Grifols SA : October 23, 2017   [Oct-23-17 10:40AM  Capital Cube]
▶ ETFs with exposure to Grifols SA : October 10, 2017   [Oct-10-17 11:29AM  Capital Cube]
▶ Grifols Shows Market Leadership With Jump To 82 RS Rating   [Sep-06-17 03:00AM  Investor's Business Daily]
▶ Grifols Is a Leader in High-Demand Plasma   [Aug-29-17 12:31PM  GuruFocus.com]
▶ Stocks Flashing Renewed Technical Strength: Grifols   [Aug-28-17 03:00AM  Investor's Business Daily]
▶ When 'New' Means A Stock Hasn't Led The Market In A While   [Jun-21-17 03:48PM  Investor's Business Daily]
▶ Hologic Smashes Fiscal Q2 Sales Views, Beats On Profit By 4 Cents   [May-10-17 04:45PM  Investor's Business Daily]
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▶ Can young blood pump new life into treatments for diseases of aging?   [01:32PM  American City Business Journals]
▶ New Breakout Stocks Zacks Rank #1 (Strong Buy)   [Apr-01-17 12:12PM  Zacks]
▶ New Strong Buy Stocks for March 30th   [Mar-30-17 10:51AM  Zacks]

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