Intrinsic value of Methanex Corporation - MEOH

Previous Close

$57.17

  Intrinsic Value

$621.33

stock screener

  Rating & Target

str. buy

+987%

Previous close

$57.17

 
Intrinsic value

$621.33

 
Up/down potential

+987%

 
Rating

str. buy

We calculate the intrinsic value of MEOH 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 4.4

 

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, %
  28.50
  26.15
  24.04
  22.13
  20.42
  18.88
  17.49
  16.24
  15.12
  14.10
  13.19
  12.37
  11.64
  10.97
  10.38
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
  6.52
  6.37
  6.23
  6.11
Revenue, $m
  5,053
  6,374
  7,906
  9,656
  11,627
  13,822
  16,239
  18,876
  21,730
  24,794
  28,066
  31,539
  35,209
  39,073
  43,127
  47,370
  51,801
  56,421
  61,233
  66,238
  71,442
  76,852
  82,473
  88,314
  94,385
  100,697
  107,260
  114,089
  121,197
  128,598
Variable operating expenses, $m
  3,006
  3,792
  4,704
  5,745
  6,918
  8,224
  9,662
  11,231
  12,929
  14,753
  16,699
  18,766
  20,949
  23,248
  25,660
  28,185
  30,822
  33,571
  36,433
  39,412
  42,508
  45,727
  49,071
  52,547
  56,159
  59,915
  63,820
  67,883
  72,112
  76,516
Fixed operating expenses, $m
  798
  816
  834
  852
  871
  890
  910
  930
  950
  971
  992
  1,014
  1,036
  1,059
  1,082
  1,106
  1,131
  1,155
  1,181
  1,207
  1,233
  1,261
  1,288
  1,317
  1,346
  1,375
  1,405
  1,436
  1,468
  1,500
Total operating expenses, $m
  3,804
  4,608
  5,538
  6,597
  7,789
  9,114
  10,572
  12,161
  13,879
  15,724
  17,691
  19,780
  21,985
  24,307
  26,742
  29,291
  31,953
  34,726
  37,614
  40,619
  43,741
  46,988
  50,359
  53,864
  57,505
  61,290
  65,225
  69,319
  73,580
  78,016
Operating income, $m
  1,248
  1,766
  2,368
  3,058
  3,838
  4,708
  5,667
  6,715
  7,851
  9,071
  10,374
  11,759
  13,223
  14,765
  16,384
  18,079
  19,849
  21,695
  23,618
  25,619
  27,701
  29,864
  32,113
  34,450
  36,880
  39,407
  42,035
  44,770
  47,617
  50,582
EBITDA, $m
  1,563
  2,163
  2,861
  3,660
  4,562
  5,569
  6,679
  7,891
  9,204
  10,615
  12,122
  13,723
  15,416
  17,199
  19,070
  21,029
  23,075
  25,209
  27,432
  29,745
  32,150
  34,650
  37,249
  39,950
  42,758
  45,678
  48,715
  51,875
  55,164
  58,591
Interest expense (income), $m
  83
  92
  146
  209
  283
  367
  462
  567
  683
  810
  947
  1,094
  1,252
  1,418
  1,595
  1,780
  1,975
  2,179
  2,392
  2,614
  2,845
  3,086
  3,336
  3,596
  3,866
  4,147
  4,439
  4,742
  5,057
  5,386
  5,727
Earnings before tax, $m
  1,156
  1,620
  2,159
  2,776
  3,471
  4,246
  5,100
  6,032
  7,041
  8,124
  9,280
  10,508
  11,805
  13,170
  14,603
  16,103
  17,670
  19,303
  21,004
  22,774
  24,615
  26,528
  28,517
  30,584
  32,734
  34,968
  37,293
  39,712
  42,231
  44,855
Tax expense, $m
  312
  437
  583
  749
  937
  1,147
  1,377
  1,629
  1,901
  2,193
  2,506
  2,837
  3,187
  3,556
  3,943
  4,348
  4,771
  5,212
  5,671
  6,149
  6,646
  7,163
  7,700
  8,258
  8,838
  9,441
  10,069
  10,722
  11,402
  12,111
Net income, $m
  844
  1,183
  1,576
  2,026
  2,534
  3,100
  3,723
  4,403
  5,140
  5,930
  6,774
  7,671
  8,618
  9,614
  10,661
  11,755
  12,899
  14,091
  15,333
  16,625
  17,969
  19,366
  20,817
  22,327
  23,895
  25,527
  27,224
  28,990
  30,829
  32,744

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
  5,923
  7,472
  9,268
  11,319
  13,631
  16,204
  19,038
  22,129
  25,474
  29,067
  32,902
  36,974
  41,277
  45,806
  50,559
  55,533
  60,728
  66,145
  71,785
  77,653
  83,754
  90,096
  96,685
  103,533
  110,651
  118,050
  125,745
  133,751
  142,083
  150,760
Adjusted assets (=assets-cash), $m
  5,923
  7,472
  9,268
  11,319
  13,631
  16,204
  19,038
  22,129
  25,474
  29,067
  32,902
  36,974
  41,277
  45,806
  50,559
  55,533
  60,728
  66,145
  71,785
  77,653
  83,754
  90,096
  96,685
  103,533
  110,651
  118,050
  125,745
  133,751
  142,083
  150,760
Revenue / Adjusted assets
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
  0.853
Average production assets, $m
  3,870
  4,882
  6,056
  7,396
  8,906
  10,587
  12,439
  14,459
  16,645
  18,993
  21,498
  24,159
  26,970
  29,930
  33,035
  36,285
  39,680
  43,219
  46,904
  50,738
  54,725
  58,868
  63,174
  67,648
  72,299
  77,134
  82,162
  87,392
  92,837
  98,506
Working capital, $m
  485
  612
  759
  927
  1,116
  1,327
  1,559
  1,812
  2,086
  2,380
  2,694
  3,028
  3,380
  3,751
  4,140
  4,548
  4,973
  5,416
  5,878
  6,359
  6,858
  7,378
  7,917
  8,478
  9,061
  9,667
  10,297
  10,953
  11,635
  12,345
Total debt, $m
  2,387
  3,428
  4,635
  6,013
  7,567
  9,296
  11,200
  13,278
  15,525
  17,940
  20,517
  23,253
  26,145
  29,188
  32,382
  35,725
  39,216
  42,856
  46,646
  50,589
  54,689
  58,951
  63,379
  67,981
  72,764
  77,736
  82,907
  88,287
  93,886
  99,717
Total liabilities, $m
  3,980
  5,021
  6,228
  7,607
  9,160
  10,889
  12,793
  14,871
  17,119
  19,533
  22,110
  24,847
  27,738
  30,782
  33,976
  37,318
  40,809
  44,449
  48,239
  52,183
  56,283
  60,544
  64,973
  69,574
  74,357
  79,330
  84,501
  89,880
  95,480
  101,311
Total equity, $m
  1,943
  2,451
  3,040
  3,713
  4,471
  5,315
  6,244
  7,258
  8,356
  9,534
  10,792
  12,127
  13,539
  15,024
  16,583
  18,215
  19,919
  21,695
  23,545
  25,470
  27,471
  29,551
  31,713
  33,959
  36,293
  38,720
  41,244
  43,870
  46,603
  49,449
Total liabilities and equity, $m
  5,923
  7,472
  9,268
  11,320
  13,631
  16,204
  19,037
  22,129
  25,475
  29,067
  32,902
  36,974
  41,277
  45,806
  50,559
  55,533
  60,728
  66,144
  71,784
  77,653
  83,754
  90,095
  96,686
  103,533
  110,650
  118,050
  125,745
  133,750
  142,083
  150,760
Debt-to-equity ratio
  1.230
  1.400
  1.520
  1.620
  1.690
  1.750
  1.790
  1.830
  1.860
  1.880
  1.900
  1.920
  1.930
  1.940
  1.950
  1.960
  1.970
  1.980
  1.980
  1.990
  1.990
  1.990
  2.000
  2.000
  2.000
  2.010
  2.010
  2.010
  2.010
  2.020
Adjusted equity ratio
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328
  0.328

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  844
  1,183
  1,576
  2,026
  2,534
  3,100
  3,723
  4,403
  5,140
  5,930
  6,774
  7,671
  8,618
  9,614
  10,661
  11,755
  12,899
  14,091
  15,333
  16,625
  17,969
  19,366
  20,817
  22,327
  23,895
  25,527
  27,224
  28,990
  30,829
  32,744
Depreciation, amort., depletion, $m
  315
  397
  492
  601
  724
  861
  1,011
  1,176
  1,353
  1,544
  1,748
  1,964
  2,193
  2,433
  2,686
  2,950
  3,226
  3,514
  3,813
  4,125
  4,449
  4,786
  5,136
  5,500
  5,878
  6,271
  6,680
  7,105
  7,548
  8,009
Funds from operations, $m
  1,159
  1,580
  2,068
  2,628
  3,258
  3,961
  4,735
  5,579
  6,493
  7,475
  8,522
  9,635
  10,810
  12,048
  13,346
  14,705
  16,125
  17,605
  19,146
  20,750
  22,418
  24,152
  25,954
  27,826
  29,773
  31,798
  33,904
  36,095
  38,376
  40,753
Change in working capital, $m
  108
  127
  147
  168
  189
  211
  232
  253
  274
  294
  314
  333
  352
  371
  389
  407
  425
  444
  462
  481
  500
  519
  540
  561
  583
  606
  630
  656
  682
  711
Cash from operations, $m
  1,051
  1,453
  1,921
  2,460
  3,069
  3,750
  4,502
  5,326
  6,219
  7,180
  8,208
  9,301
  10,458
  11,677
  12,957
  14,298
  15,699
  17,161
  18,684
  20,270
  21,918
  23,632
  25,414
  27,266
  29,191
  31,192
  33,274
  35,440
  37,694
  40,042
Maintenance CAPEX, $m
  -245
  -315
  -397
  -492
  -601
  -724
  -861
  -1,011
  -1,176
  -1,353
  -1,544
  -1,748
  -1,964
  -2,193
  -2,433
  -2,686
  -2,950
  -3,226
  -3,514
  -3,813
  -4,125
  -4,449
  -4,786
  -5,136
  -5,500
  -5,878
  -6,271
  -6,680
  -7,105
  -7,548
New CAPEX, $m
  -859
  -1,012
  -1,173
  -1,340
  -1,510
  -1,681
  -1,852
  -2,020
  -2,186
  -2,348
  -2,506
  -2,660
  -2,811
  -2,960
  -3,106
  -3,250
  -3,394
  -3,539
  -3,685
  -3,834
  -3,987
  -4,143
  -4,306
  -4,474
  -4,651
  -4,835
  -5,028
  -5,231
  -5,444
  -5,669
Cash from investing activities, $m
  -1,104
  -1,327
  -1,570
  -1,832
  -2,111
  -2,405
  -2,713
  -3,031
  -3,362
  -3,701
  -4,050
  -4,408
  -4,775
  -5,153
  -5,539
  -5,936
  -6,344
  -6,765
  -7,199
  -7,647
  -8,112
  -8,592
  -9,092
  -9,610
  -10,151
  -10,713
  -11,299
  -11,911
  -12,549
  -13,217
Free cash flow, $m
  -52
  126
  351
  627
  957
  1,345
  1,790
  2,294
  2,858
  3,479
  4,158
  4,893
  5,682
  6,525
  7,418
  8,362
  9,355
  10,396
  11,485
  12,622
  13,807
  15,040
  16,322
  17,655
  19,040
  20,479
  21,975
  23,529
  25,145
  26,825
Issuance/(repayment) of debt, $m
  883
  1,041
  1,207
  1,378
  1,553
  1,729
  1,904
  2,078
  2,248
  2,414
  2,577
  2,736
  2,891
  3,044
  3,194
  3,343
  3,491
  3,640
  3,790
  3,943
  4,100
  4,261
  4,428
  4,602
  4,783
  4,972
  5,171
  5,380
  5,599
  5,831
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  
  883
  1,041
  1,207
  1,378
  1,553
  1,729
  1,904
  2,078
  2,248
  2,414
  2,577
  2,736
  2,891
  3,044
  3,194
  3,343
  3,491
  3,640
  3,790
  3,943
  4,100
  4,261
  4,428
  4,602
  4,783
  4,972
  5,171
  5,380
  5,599
  5,831
Total cash flow (excl. dividends), $m
  830
  1,167
  1,558
  2,005
  2,511
  3,074
  3,694
  4,372
  5,106
  5,894
  6,735
  7,629
  8,574
  9,568
  10,612
  11,705
  12,846
  14,036
  15,276
  16,565
  17,907
  19,301
  20,750
  22,257
  23,823
  25,452
  27,146
  28,909
  30,744
  32,656
Retained Cash Flow (-), $m
  -432
  -508
  -589
  -673
  -758
  -844
  -930
  -1,014
  -1,097
  -1,179
  -1,258
  -1,335
  -1,411
  -1,486
  -1,559
  -1,632
  -1,704
  -1,777
  -1,850
  -1,925
  -2,001
  -2,080
  -2,161
  -2,246
  -2,335
  -2,427
  -2,524
  -2,626
  -2,733
  -2,846
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
  399
  659
  969
  1,333
  1,753
  2,230
  2,765
  3,358
  4,008
  4,715
  5,478
  6,294
  7,163
  8,083
  9,053
  10,073
  11,142
  12,260
  13,426
  14,641
  15,906
  17,221
  18,589
  20,011
  21,489
  23,025
  24,622
  26,283
  28,011
  29,810
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  382
  603
  843
  1,097
  1,358
  1,618
  1,868
  2,099
  2,303
  2,472
  2,601
  2,686
  2,723
  2,714
  2,658
  2,560
  2,424
  2,258
  2,067
  1,860
  1,645
  1,429
  1,218
  1,019
  836
  672
  528
  407
  306
  224
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

Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company's subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.

FINANCIAL RATIOS  of  Methanex Corporation (MEOH)

Valuation Ratios
P/E Ratio -395
Price to Sales 2.6
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 20.5
Price to Free Cash Flow 34.2
Growth Rates
Sales Growth Rate -10.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -76.5%
Cap. Spend. - 3 Yr. Gr. Rate -29.6%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity 94.1%
Total Debt to Equity 97.4%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital -0.4%
Ret/ On T. Cap. - 3 Yr. Avg. 6.6%
Return On Equity -0.8%
Return On Equity - 3 Yr. Avg. 12.4%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 25.3%
Gross Margin - 3 Yr. Avg. 28.4%
EBITDA Margin 13.7%
EBITDA Margin - 3 Yr. Avg. 20.8%
Operating Margin 1.4%
Oper. Margin - 3 Yr. Avg. 11.2%
Pre-Tax Margin -1.9%
Pre-Tax Margin - 3 Yr. Avg. 9.4%
Net Profit Margin -0.7%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 26.3%
Eff/ Tax Rate - 3 Yr. Avg. 18.3%
Payout Ratio -761.5%

MEOH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MEOH stock intrinsic value calculation we used $3932 million for the last fiscal year's total revenue generated by Methanex Corporation. The default revenue input number comes from 0001 income statement of Methanex 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 MEOH stock valuation model: a) initial revenue growth rate of 28.5% 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 4.3%, whose default value for MEOH is calculated based on our internal credit rating of Methanex 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 Methanex 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 MEOH stock the variable cost ratio is equal to 59.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $781 million in the base year in the intrinsic value calculation for MEOH 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 6.1% for Methanex Corporation.

Corporate tax rate of 27% is the nominal tax rate for Methanex 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 MEOH 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 MEOH are equal to 76.6%.

Life of production assets of 12.3 years is the average useful life of capital assets used in Methanex 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 MEOH is equal to 9.6%. 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 - $1511.213 million for Methanex 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 77.186 million for Methanex 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 Methanex Corporation at the current share price and the inputted number of shares is $4.4 billion.

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