Intrinsic value of Mosaic Company (The) - MOS

Previous Close

$22.36

  Intrinsic Value

$5.63

stock screener

  Rating & Target

str. sell

-75%

Previous close

$22.36

 
Intrinsic value

$5.63

 
Up/down potential

-75%

 
Rating

str. sell

We calculate the intrinsic value of MOS 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 8.6

 

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, %
  20.50
  18.95
  17.56
  16.30
  15.17
  14.15
  13.24
  12.41
  11.67
  11.01
  10.40
  9.86
  9.38
  8.94
  8.55
  8.19
  7.87
  7.58
  7.33
  7.09
  6.88
  6.70
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
Revenue, $m
  11,552
  13,742
  16,154
  18,787
  21,637
  24,699
  27,968
  31,440
  35,110
  38,974
  43,029
  47,273
  51,706
  56,329
  61,143
  66,151
  71,359
  76,771
  82,396
  88,241
  94,316
  100,631
  107,199
  114,031
  121,143
  128,548
  136,262
  144,304
  152,689
  161,439
Variable operating expenses, $m
  9,149
  10,850
  12,725
  14,772
  16,986
  19,366
  21,907
  24,606
  27,458
  30,461
  33,441
  36,740
  40,185
  43,778
  47,519
  51,412
  55,459
  59,665
  64,037
  68,579
  73,301
  78,209
  83,313
  88,623
  94,150
  99,905
  105,901
  112,151
  118,668
  125,468
Fixed operating expenses, $m
  1,106
  1,130
  1,155
  1,180
  1,206
  1,233
  1,260
  1,288
  1,316
  1,345
  1,375
  1,405
  1,436
  1,467
  1,500
  1,533
  1,566
  1,601
  1,636
  1,672
  1,709
  1,746
  1,785
  1,824
  1,864
  1,905
  1,947
  1,990
  2,034
  2,079
Total operating expenses, $m
  10,255
  11,980
  13,880
  15,952
  18,192
  20,599
  23,167
  25,894
  28,774
  31,806
  34,816
  38,145
  41,621
  45,245
  49,019
  52,945
  57,025
  61,266
  65,673
  70,251
  75,010
  79,955
  85,098
  90,447
  96,014
  101,810
  107,848
  114,141
  120,702
  127,547
Operating income, $m
  1,297
  1,761
  2,274
  2,835
  3,444
  4,100
  4,801
  5,547
  6,336
  7,168
  8,213
  9,128
  10,085
  11,084
  12,124
  13,207
  14,333
  15,505
  16,723
  17,989
  19,306
  20,676
  22,101
  23,584
  25,128
  26,737
  28,414
  30,163
  31,988
  33,893
EBITDA, $m
  2,458
  3,109
  3,828
  4,615
  5,468
  6,386
  7,368
  8,411
  9,515
  10,678
  11,899
  13,178
  14,515
  15,909
  17,362
  18,874
  20,447
  22,082
  23,782
  25,549
  27,387
  29,297
  31,285
  33,353
  35,507
  37,750
  40,088
  42,526
  45,069
  47,724
Interest expense (income), $m
  125
  245
  351
  471
  603
  747
  903
  1,070
  1,249
  1,439
  1,639
  1,851
  2,072
  2,304
  2,547
  2,800
  3,063
  3,337
  3,621
  3,917
  4,225
  4,545
  4,877
  5,222
  5,581
  5,955
  6,344
  6,748
  7,170
  7,610
  8,069
Earnings before tax, $m
  1,053
  1,410
  1,803
  2,232
  2,697
  3,197
  3,731
  4,298
  4,897
  5,529
  6,362
  7,056
  7,781
  8,537
  9,324
  10,144
  10,997
  11,884
  12,806
  13,764
  14,762
  15,799
  16,879
  18,003
  19,174
  20,394
  21,666
  22,993
  24,378
  25,824
Tax expense, $m
  284
  381
  487
  603
  728
  863
  1,007
  1,160
  1,322
  1,493
  1,718
  1,905
  2,101
  2,305
  2,518
  2,739
  2,969
  3,209
  3,458
  3,716
  3,986
  4,266
  4,557
  4,861
  5,177
  5,506
  5,850
  6,208
  6,582
  6,972
Net income, $m
  769
  1,029
  1,316
  1,629
  1,969
  2,334
  2,724
  3,137
  3,575
  4,036
  4,644
  5,151
  5,680
  6,232
  6,807
  7,405
  8,028
  8,675
  9,348
  10,048
  10,776
  11,533
  12,321
  13,142
  13,997
  14,887
  15,816
  16,785
  17,796
  18,852

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
  24,219
  28,808
  33,865
  39,385
  45,360
  51,780
  58,634
  65,912
  73,606
  81,706
  90,207
  99,105
  108,399
  118,090
  128,182
  138,681
  149,599
  160,946
  172,737
  184,991
  197,727
  210,966
  224,735
  239,059
  253,968
  269,492
  285,665
  302,524
  320,104
  338,446
Adjusted assets (=assets-cash), $m
  24,219
  28,808
  33,865
  39,385
  45,360
  51,780
  58,634
  65,912
  73,606
  81,706
  90,207
  99,105
  108,399
  118,090
  128,182
  138,681
  149,599
  160,946
  172,737
  184,991
  197,727
  210,966
  224,735
  239,059
  253,968
  269,492
  285,665
  302,524
  320,104
  338,446
Revenue / Adjusted assets
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
  0.477
Average production assets, $m
  13,955
  16,600
  19,514
  22,694
  26,137
  29,836
  33,786
  37,980
  42,413
  47,080
  51,979
  57,106
  62,461
  68,045
  73,860
  79,910
  86,201
  92,740
  99,534
  106,595
  113,933
  121,562
  129,496
  137,750
  146,340
  155,286
  164,605
  174,319
  184,449
  195,018
Working capital, $m
  1,132
  1,347
  1,583
  1,841
  2,120
  2,420
  2,741
  3,081
  3,441
  3,819
  4,217
  4,633
  5,067
  5,520
  5,992
  6,483
  6,993
  7,524
  8,075
  8,648
  9,243
  9,862
  10,505
  11,175
  11,872
  12,598
  13,354
  14,142
  14,964
  15,821
Total debt, $m
  6,505
  8,721
  11,164
  13,830
  16,716
  19,817
  23,127
  26,643
  30,359
  34,271
  38,377
  42,675
  47,164
  51,845
  56,719
  61,790
  67,063
  72,544
  78,239
  84,158
  90,309
  96,704
  103,354
  110,273
  117,473
  124,972
  132,784
  140,926
  149,417
  158,276
Total liabilities, $m
  11,698
  13,914
  16,357
  19,023
  21,909
  25,010
  28,320
  31,836
  35,552
  39,464
  43,570
  47,868
  52,357
  57,037
  61,912
  66,983
  72,256
  77,737
  83,432
  89,351
  95,502
  101,897
  108,547
  115,465
  122,666
  130,165
  137,976
  146,119
  154,610
  163,469
Total equity, $m
  12,521
  14,894
  17,508
  20,362
  23,451
  26,770
  30,314
  34,077
  38,054
  42,242
  46,637
  51,237
  56,042
  61,052
  66,270
  71,698
  77,343
  83,209
  89,305
  95,640
  102,225
  109,070
  116,188
  123,593
  131,301
  139,327
  147,689
  156,405
  165,494
  174,977
Total liabilities and equity, $m
  24,219
  28,808
  33,865
  39,385
  45,360
  51,780
  58,634
  65,913
  73,606
  81,706
  90,207
  99,105
  108,399
  118,089
  128,182
  138,681
  149,599
  160,946
  172,737
  184,991
  197,727
  210,967
  224,735
  239,058
  253,967
  269,492
  285,665
  302,524
  320,104
  338,446
Debt-to-equity ratio
  0.520
  0.590
  0.640
  0.680
  0.710
  0.740
  0.760
  0.780
  0.800
  0.810
  0.820
  0.830
  0.840
  0.850
  0.860
  0.860
  0.870
  0.870
  0.880
  0.880
  0.880
  0.890
  0.890
  0.890
  0.890
  0.900
  0.900
  0.900
  0.900
  0.900
Adjusted equity ratio
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  769
  1,029
  1,316
  1,629
  1,969
  2,334
  2,724
  3,137
  3,575
  4,036
  4,644
  5,151
  5,680
  6,232
  6,807
  7,405
  8,028
  8,675
  9,348
  10,048
  10,776
  11,533
  12,321
  13,142
  13,997
  14,887
  15,816
  16,785
  17,796
  18,852
Depreciation, amort., depletion, $m
  1,161
  1,348
  1,555
  1,780
  2,024
  2,287
  2,567
  2,864
  3,179
  3,510
  3,686
  4,050
  4,430
  4,826
  5,238
  5,667
  6,114
  6,577
  7,059
  7,560
  8,080
  8,621
  9,184
  9,769
  10,379
  11,013
  11,674
  12,363
  13,081
  13,831
Funds from operations, $m
  1,929
  2,377
  2,871
  3,410
  3,993
  4,621
  5,290
  6,002
  6,754
  7,546
  8,331
  9,201
  10,110
  11,058
  12,045
  13,073
  14,141
  15,252
  16,407
  17,608
  18,856
  20,155
  21,506
  22,911
  24,375
  25,901
  27,490
  29,148
  30,877
  32,683
Change in working capital, $m
  193
  215
  236
  258
  279
  300
  320
  340
  360
  379
  397
  416
  434
  453
  472
  491
  510
  530
  551
  573
  595
  619
  644
  670
  697
  726
  756
  788
  822
  857
Cash from operations, $m
  1,737
  2,163
  2,634
  3,152
  3,714
  4,321
  4,970
  5,662
  6,394
  7,167
  7,933
  8,785
  9,675
  10,605
  11,573
  12,582
  13,631
  14,722
  15,856
  17,035
  18,261
  19,536
  20,862
  22,242
  23,678
  25,175
  26,734
  28,360
  30,056
  31,825
Maintenance CAPEX, $m
  -821
  -990
  -1,177
  -1,384
  -1,610
  -1,854
  -2,116
  -2,396
  -2,694
  -3,008
  -3,339
  -3,686
  -4,050
  -4,430
  -4,826
  -5,238
  -5,667
  -6,114
  -6,577
  -7,059
  -7,560
  -8,080
  -8,621
  -9,184
  -9,769
  -10,379
  -11,013
  -11,674
  -12,363
  -13,081
New CAPEX, $m
  -2,376
  -2,645
  -2,914
  -3,181
  -3,443
  -3,699
  -3,950
  -4,194
  -4,433
  -4,668
  -4,898
  -5,127
  -5,355
  -5,584
  -5,815
  -6,050
  -6,291
  -6,538
  -6,795
  -7,061
  -7,338
  -7,629
  -7,934
  -8,254
  -8,591
  -8,945
  -9,319
  -9,714
  -10,130
  -10,569
Cash from investing activities, $m
  -3,197
  -3,635
  -4,091
  -4,565
  -5,053
  -5,553
  -6,066
  -6,590
  -7,127
  -7,676
  -8,237
  -8,813
  -9,405
  -10,014
  -10,641
  -11,288
  -11,958
  -12,652
  -13,372
  -14,120
  -14,898
  -15,709
  -16,555
  -17,438
  -18,360
  -19,324
  -20,332
  -21,388
  -22,493
  -23,650
Free cash flow, $m
  -1,461
  -1,472
  -1,457
  -1,413
  -1,338
  -1,232
  -1,096
  -929
  -732
  -508
  -304
  -29
  270
  591
  932
  1,293
  1,673
  2,070
  2,484
  2,915
  3,363
  3,827
  4,307
  4,804
  5,318
  5,851
  6,402
  6,972
  7,562
  8,175
Issuance/(repayment) of debt, $m
  1,976
  2,217
  2,443
  2,666
  2,886
  3,101
  3,311
  3,516
  3,716
  3,912
  4,106
  4,298
  4,489
  4,681
  4,874
  5,071
  5,273
  5,481
  5,695
  5,919
  6,151
  6,395
  6,650
  6,919
  7,201
  7,498
  7,812
  8,142
  8,491
  8,859
Issuance/(repurchase) of shares, $m
  1,355
  1,344
  1,299
  1,224
  1,120
  985
  820
  626
  402
  152
  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  
  3,331
  3,561
  3,742
  3,890
  4,006
  4,086
  4,131
  4,142
  4,118
  4,064
  4,106
  4,298
  4,489
  4,681
  4,874
  5,071
  5,273
  5,481
  5,695
  5,919
  6,151
  6,395
  6,650
  6,919
  7,201
  7,498
  7,812
  8,142
  8,491
  8,859
Total cash flow (excl. dividends), $m
  1,870
  2,089
  2,284
  2,478
  2,668
  2,854
  3,035
  3,213
  3,386
  3,556
  3,802
  4,269
  4,759
  5,272
  5,807
  6,365
  6,946
  7,551
  8,180
  8,834
  9,514
  10,221
  10,957
  11,723
  12,519
  13,349
  14,213
  15,114
  16,054
  17,034
Retained Cash Flow (-), $m
  -2,124
  -2,373
  -2,615
  -2,854
  -3,089
  -3,319
  -3,544
  -3,763
  -3,978
  -4,188
  -4,395
  -4,600
  -4,805
  -5,010
  -5,217
  -5,428
  -5,644
  -5,866
  -6,096
  -6,335
  -6,584
  -6,845
  -7,118
  -7,406
  -7,708
  -8,026
  -8,362
  -8,716
  -9,089
  -9,483
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
  -253
  -284
  -330
  -376
  -421
  -465
  -508
  -550
  -592
  -632
  -593
  -331
  -46
  261
  589
  936
  1,302
  1,684
  2,083
  2,499
  2,930
  3,376
  3,839
  4,317
  4,812
  5,323
  5,852
  6,399
  6,965
  7,551
Discount rate, %
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
  -242
  -257
  -282
  -302
  -315
  -323
  -326
  -323
  -315
  -304
  -255
  -126
  -15
  76
  147
  198
  231
  248
  251
  242
  225
  202
  176
  149
  123
  98
  77
  58
  43
  30
Current shareholders' claim on cash, %
  86.4
  76.5
  69.2
  63.8
  59.9
  57.0
  55.0
  53.6
  52.9
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6
  52.6

The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients. The Company operates through three segments: Phosphates, Potash and International Distribution. The Company is a supplier of phosphate- and potash-based crop nutrients and animal feed ingredients. The Phosphates segment owns and operates mines and production facilities in Florida, which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana, which produce concentrated phosphate crop nutrients. The Potash segment mines and processes potash in Canada and the United States, and sells potash in North America and internationally. The International Distribution segment markets phosphate-, potash- and nitrogen-based crop nutrients and animal feed ingredients, and provides other ancillary services to wholesalers, cooperatives, independent retailers and farmers in South America and the Asia-Pacific regions.

FINANCIAL RATIOS  of  Mosaic Company (The) (MOS)

Valuation Ratios
P/E Ratio 26.3
Price to Sales 1.1
Price to Book 0.8
Price to Tangible Book
Price to Cash Flow 6.2
Price to Free Cash Flow 18.5
Growth Rates
Sales Growth Rate -19.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -15.7%
Cap. Spend. - 3 Yr. Gr. Rate 1.1%
Financial Strength
Quick Ratio 17
Current Ratio 0.1
LT Debt to Equity 39.4%
Total Debt to Equity 39.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 2.7%
Ret/ On Assets - 3 Yr. Avg. 5%
Return On Total Capital 2.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 3.1%
Return On Equity - 3 Yr. Avg. 7.5%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 11.3%
Gross Margin - 3 Yr. Avg. 17.3%
EBITDA Margin 15%
EBITDA Margin - 3 Yr. Avg. 20.1%
Operating Margin 4.5%
Oper. Margin - 3 Yr. Avg. 11.1%
Pre-Tax Margin 3.4%
Pre-Tax Margin - 3 Yr. Avg. 9.7%
Net Profit Margin 4.2%
Net Profit Margin - 3 Yr. Avg. 8.9%
Effective Tax Rate -31%
Eff/ Tax Rate - 3 Yr. Avg. -2.3%
Payout Ratio 129.2%

MOS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MOS stock intrinsic value calculation we used $9587 million for the last fiscal year's total revenue generated by Mosaic Company (The). The default revenue input number comes from 0001 income statement of Mosaic Company (The). 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 MOS stock valuation model: a) initial revenue growth rate of 20.5% 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 4.9%, whose default value for MOS is calculated based on our internal credit rating of Mosaic Company (The), 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 Mosaic Company (The).
    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 MOS stock the variable cost ratio is equal to 79.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1082 million in the base year in the intrinsic value calculation for MOS 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 Mosaic Company (The).

Corporate tax rate of 27% is the nominal tax rate for Mosaic Company (The). 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 MOS 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 MOS are equal to 120.8%.

Life of production assets of 14.1 years is the average useful life of capital assets used in Mosaic Company (The) 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 MOS is equal to 9.8%. 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 - $10397.3 million for Mosaic Company (The) - 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 385.580 million for Mosaic Company (The) 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 Mosaic Company (The) at the current share price and the inputted number of shares is $8.6 billion.

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