Intrinsic value of Nexa Resources S.A. - NEXA

Previous Close

$12.40

  Intrinsic Value

$252.09

stock screener

  Rating & Target

str. buy

+999%

Previous close

$12.40

 
Intrinsic value

$252.09

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of NEXA 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 1.6

 

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, %
  24.70
  22.73
  20.96
  19.36
  17.93
  16.63
  15.47
  14.42
  13.48
  12.63
  11.87
  11.18
  10.56
  10.01
  9.51
  9.06
  8.65
  8.29
  7.96
  7.66
  7.40
  7.16
  6.94
  6.75
  6.57
  6.41
  6.27
  6.15
  6.03
  5.93
Revenue, $m
  3,054
  3,748
  4,534
  5,411
  6,381
  7,443
  8,594
  9,833
  11,159
  12,569
  14,060
  15,633
  17,284
  19,014
  20,821
  22,707
  24,671
  26,715
  28,841
  31,051
  33,347
  35,733
  38,213
  40,791
  43,471
  46,259
  49,161
  52,182
  55,330
  58,609
Variable operating expenses, $m
  1,299
  1,552
  1,840
  2,160
  2,515
  2,903
  3,324
  3,777
  4,262
  4,777
  5,140
  5,715
  6,318
  6,951
  7,611
  8,301
  9,019
  9,766
  10,543
  11,351
  12,190
  13,063
  13,969
  14,911
  15,891
  16,911
  17,971
  19,076
  20,226
  21,425
Fixed operating expenses, $m
  1,013
  1,035
  1,058
  1,081
  1,105
  1,129
  1,154
  1,179
  1,205
  1,232
  1,259
  1,287
  1,315
  1,344
  1,374
  1,404
  1,435
  1,466
  1,498
  1,531
  1,565
  1,600
  1,635
  1,671
  1,707
  1,745
  1,783
  1,823
  1,863
  1,904
Total operating expenses, $m
  2,312
  2,587
  2,898
  3,241
  3,620
  4,032
  4,478
  4,956
  5,467
  6,009
  6,399
  7,002
  7,633
  8,295
  8,985
  9,705
  10,454
  11,232
  12,041
  12,882
  13,755
  14,663
  15,604
  16,582
  17,598
  18,656
  19,754
  20,899
  22,089
  23,329
Operating income, $m
  742
  1,161
  1,636
  2,170
  2,761
  3,410
  4,116
  4,877
  5,692
  6,560
  7,661
  8,631
  9,651
  10,719
  11,836
  13,002
  14,218
  15,483
  16,799
  18,168
  19,591
  21,071
  22,609
  24,208
  25,872
  27,604
  29,406
  31,284
  33,240
  35,280
EBITDA, $m
  1,181
  1,657
  2,199
  2,806
  3,479
  4,217
  5,020
  5,885
  6,811
  7,797
  8,842
  9,943
  11,102
  12,315
  13,584
  14,909
  16,289
  17,726
  19,220
  20,775
  22,391
  24,070
  25,817
  27,633
  29,521
  31,487
  33,533
  35,664
  37,885
  40,200
Interest expense (income), $m
  37
  119
  188
  268
  358
  459
  571
  693
  825
  967
  1,120
  1,282
  1,453
  1,634
  1,824
  2,023
  2,230
  2,447
  2,673
  2,908
  3,152
  3,406
  3,670
  3,944
  4,230
  4,526
  4,834
  5,154
  5,488
  5,835
  6,197
Earnings before tax, $m
  624
  972
  1,368
  1,811
  2,302
  2,840
  3,423
  4,052
  4,725
  5,440
  6,380
  7,178
  8,017
  8,895
  9,814
  10,772
  11,771
  12,810
  13,891
  15,016
  16,185
  17,401
  18,664
  19,979
  21,346
  22,770
  24,252
  25,796
  27,405
  29,083
Tax expense, $m
  168
  263
  369
  489
  622
  767
  924
  1,094
  1,276
  1,469
  1,722
  1,938
  2,164
  2,402
  2,650
  2,908
  3,178
  3,459
  3,751
  4,054
  4,370
  4,698
  5,039
  5,394
  5,764
  6,148
  6,548
  6,965
  7,399
  7,853
Net income, $m
  455
  710
  999
  1,322
  1,681
  2,073
  2,499
  2,958
  3,449
  3,971
  4,657
  5,240
  5,852
  6,494
  7,164
  7,864
  8,592
  9,351
  10,141
  10,962
  11,815
  12,702
  13,625
  14,585
  15,583
  16,622
  17,704
  18,831
  20,006
  21,231

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
  6,817
  8,366
  10,119
  12,079
  14,244
  16,613
  19,183
  21,950
  24,908
  28,055
  31,385
  34,894
  38,580
  42,441
  46,476
  50,685
  55,070
  59,632
  64,377
  69,309
  74,435
  79,761
  85,296
  91,050
  97,034
  103,258
  109,735
  116,479
  123,503
  130,825
Adjusted assets (=assets-cash), $m
  6,817
  8,366
  10,119
  12,079
  14,244
  16,613
  19,183
  21,950
  24,908
  28,055
  31,385
  34,894
  38,580
  42,441
  46,476
  50,685
  55,070
  59,632
  64,377
  69,309
  74,435
  79,761
  85,296
  91,050
  97,034
  103,258
  109,735
  116,479
  123,503
  130,825
Revenue / Adjusted assets
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
  0.448
Average production assets, $m
  3,640
  4,468
  5,404
  6,450
  7,606
  8,872
  10,244
  11,721
  13,302
  14,982
  16,760
  18,634
  20,603
  22,664
  24,819
  27,067
  29,408
  31,845
  34,378
  37,012
  39,749
  42,594
  45,550
  48,622
  51,818
  55,141
  58,600
  62,201
  65,953
  69,862
Working capital, $m
  -140
  -172
  -209
  -249
  -294
  -342
  -395
  -452
  -513
  -578
  -647
  -719
  -795
  -875
  -958
  -1,045
  -1,135
  -1,229
  -1,327
  -1,428
  -1,534
  -1,644
  -1,758
  -1,876
  -2,000
  -2,128
  -2,261
  -2,400
  -2,545
  -2,696
Total debt, $m
  2,294
  3,267
  4,368
  5,599
  6,959
  8,446
  10,060
  11,798
  13,656
  15,632
  17,723
  19,927
  22,242
  24,667
  27,200
  29,844
  32,597
  35,463
  38,442
  41,540
  44,758
  48,103
  51,580
  55,193
  58,951
  62,859
  66,927
  71,162
  75,574
  80,171
Total liabilities, $m
  4,281
  5,254
  6,355
  7,585
  8,945
  10,433
  12,047
  13,784
  15,643
  17,619
  19,710
  21,914
  24,229
  26,653
  29,187
  31,830
  34,584
  37,449
  40,429
  43,526
  46,745
  50,090
  53,566
  57,180
  60,937
  64,846
  68,913
  73,149
  77,560
  82,158
Total equity, $m
  2,536
  3,112
  3,764
  4,493
  5,299
  6,180
  7,136
  8,165
  9,266
  10,436
  11,675
  12,981
  14,352
  15,788
  17,289
  18,855
  20,486
  22,183
  23,948
  25,783
  27,690
  29,671
  31,730
  33,871
  36,097
  38,412
  40,821
  43,330
  45,943
  48,667
Total liabilities and equity, $m
  6,817
  8,366
  10,119
  12,078
  14,244
  16,613
  19,183
  21,949
  24,909
  28,055
  31,385
  34,895
  38,581
  42,441
  46,476
  50,685
  55,070
  59,632
  64,377
  69,309
  74,435
  79,761
  85,296
  91,051
  97,034
  103,258
  109,734
  116,479
  123,503
  130,825
Debt-to-equity ratio
  0.900
  1.050
  1.160
  1.250
  1.310
  1.370
  1.410
  1.440
  1.470
  1.500
  1.520
  1.540
  1.550
  1.560
  1.570
  1.580
  1.590
  1.600
  1.610
  1.610
  1.620
  1.620
  1.630
  1.630
  1.630
  1.640
  1.640
  1.640
  1.640
  1.650
Adjusted equity ratio
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  455
  710
  999
  1,322
  1,681
  2,073
  2,499
  2,958
  3,449
  3,971
  4,657
  5,240
  5,852
  6,494
  7,164
  7,864
  8,592
  9,351
  10,141
  10,962
  11,815
  12,702
  13,625
  14,585
  15,583
  16,622
  17,704
  18,831
  20,006
  21,231
Depreciation, amort., depletion, $m
  439
  497
  563
  637
  718
  807
  904
  1,008
  1,119
  1,237
  1,180
  1,312
  1,451
  1,596
  1,748
  1,906
  2,071
  2,243
  2,421
  2,606
  2,799
  3,000
  3,208
  3,424
  3,649
  3,883
  4,127
  4,380
  4,645
  4,920
Funds from operations, $m
  894
  1,207
  1,562
  1,959
  2,399
  2,880
  3,403
  3,966
  4,568
  5,209
  5,837
  6,552
  7,303
  8,090
  8,912
  9,770
  10,663
  11,594
  12,562
  13,568
  14,614
  15,702
  16,833
  18,009
  19,232
  20,505
  21,831
  23,211
  24,650
  26,151
Change in working capital, $m
  -28
  -32
  -36
  -40
  -45
  -49
  -53
  -57
  -61
  -65
  -69
  -72
  -76
  -80
  -83
  -87
  -90
  -94
  -98
  -102
  -106
  -110
  -114
  -119
  -123
  -128
  -133
  -139
  -145
  -151
Cash from operations, $m
  922
  1,239
  1,598
  1,999
  2,443
  2,929
  3,456
  4,023
  4,629
  5,273
  5,906
  6,624
  7,379
  8,169
  8,995
  9,856
  10,754
  11,688
  12,660
  13,670
  14,720
  15,812
  16,947
  18,127
  19,355
  20,633
  21,964
  23,350
  24,795
  26,302
Maintenance CAPEX, $m
  -206
  -256
  -315
  -381
  -454
  -536
  -625
  -721
  -825
  -937
  -1,055
  -1,180
  -1,312
  -1,451
  -1,596
  -1,748
  -1,906
  -2,071
  -2,243
  -2,421
  -2,606
  -2,799
  -3,000
  -3,208
  -3,424
  -3,649
  -3,883
  -4,127
  -4,380
  -4,645
New CAPEX, $m
  -721
  -827
  -936
  -1,046
  -1,156
  -1,265
  -1,372
  -1,477
  -1,580
  -1,680
  -1,778
  -1,874
  -1,968
  -2,062
  -2,155
  -2,248
  -2,341
  -2,437
  -2,534
  -2,634
  -2,737
  -2,844
  -2,956
  -3,073
  -3,195
  -3,324
  -3,459
  -3,601
  -3,751
  -3,910
Cash from investing activities, $m
  -927
  -1,083
  -1,251
  -1,427
  -1,610
  -1,801
  -1,997
  -2,198
  -2,405
  -2,617
  -2,833
  -3,054
  -3,280
  -3,513
  -3,751
  -3,996
  -4,247
  -4,508
  -4,777
  -5,055
  -5,343
  -5,643
  -5,956
  -6,281
  -6,619
  -6,973
  -7,342
  -7,728
  -8,131
  -8,555
Free cash flow, $m
  -5
  155
  347
  572
  833
  1,128
  1,459
  1,824
  2,223
  2,656
  3,073
  3,570
  4,098
  4,656
  5,244
  5,861
  6,506
  7,180
  7,883
  8,615
  9,376
  10,168
  10,991
  11,847
  12,736
  13,661
  14,622
  15,622
  16,663
  17,747
Issuance/(repayment) of debt, $m
  847
  973
  1,101
  1,230
  1,360
  1,488
  1,614
  1,737
  1,858
  1,976
  2,091
  2,204
  2,315
  2,425
  2,534
  2,643
  2,753
  2,865
  2,980
  3,097
  3,219
  3,345
  3,476
  3,614
  3,758
  3,909
  4,068
  4,235
  4,412
  4,598
Issuance/(repurchase) of shares, $m
  51
  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  
  898
  973
  1,101
  1,230
  1,360
  1,488
  1,614
  1,737
  1,858
  1,976
  2,091
  2,204
  2,315
  2,425
  2,534
  2,643
  2,753
  2,865
  2,980
  3,097
  3,219
  3,345
  3,476
  3,614
  3,758
  3,909
  4,068
  4,235
  4,412
  4,598
Total cash flow (excl. dividends), $m
  893
  1,128
  1,448
  1,803
  2,192
  2,616
  3,073
  3,561
  4,082
  4,632
  5,164
  5,774
  6,413
  7,081
  7,778
  8,504
  9,260
  10,046
  10,863
  11,712
  12,595
  13,513
  14,468
  15,460
  16,494
  17,569
  18,690
  19,857
  21,075
  22,345
Retained Cash Flow (-), $m
  -506
  -576
  -652
  -729
  -805
  -881
  -956
  -1,029
  -1,101
  -1,170
  -1,239
  -1,306
  -1,371
  -1,436
  -1,501
  -1,566
  -1,631
  -1,697
  -1,765
  -1,835
  -1,907
  -1,981
  -2,059
  -2,141
  -2,226
  -2,315
  -2,410
  -2,509
  -2,613
  -2,723
Prev. year cash balance distribution, $m
  457
  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
  844
  552
  796
  1,074
  1,387
  1,735
  2,116
  2,532
  2,981
  3,462
  3,925
  4,469
  5,042
  5,645
  6,277
  6,938
  7,629
  8,348
  9,098
  9,878
  10,689
  11,532
  12,408
  13,320
  14,268
  15,254
  16,280
  17,349
  18,462
  19,622
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
  809
  505
  692
  884
  1,075
  1,259
  1,430
  1,583
  1,712
  1,815
  1,864
  1,907
  1,917
  1,895
  1,843
  1,763
  1,660
  1,537
  1,401
  1,255
  1,106
  957
  813
  678
  555
  445
  349
  268
  202
  148
Current shareholders' claim on cash, %
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6
  96.6

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

FINANCIAL RATIOS  of  Nexa Resources S.A. (NEXA)

Valuation Ratios
P/E Ratio 17.8
Price to Sales 0.9
Price to Book 0.6
Price to Tangible Book
Price to Cash Flow 2.8
Price to Free Cash Flow 4.1
Growth Rates
Sales Growth Rate 4.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -2.1%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 18
Current Ratio 0.1
LT Debt to Equity 38%
Total Debt to Equity 40%
Interest Coverage 7
Management Effectiveness
Return On Assets 1.9%
Ret/ On Assets - 3 Yr. Avg. -0.5%
Return On Total Capital 2.4%
Ret/ On T. Cap. - 3 Yr. Avg. -1.6%
Return On Equity 3.4%
Return On Equity - 3 Yr. Avg. -2.2%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 27.5%
Gross Margin - 3 Yr. Avg. 24.7%
EBITDA Margin 27.2%
EBITDA Margin - 3 Yr. Avg. 17.7%
Operating Margin 6.8%
Oper. Margin - 3 Yr. Avg. 8%
Pre-Tax Margin 10.9%
Pre-Tax Margin - 3 Yr. Avg. 0.5%
Net Profit Margin 4.9%
Net Profit Margin - 3 Yr. Avg. -1.3%
Effective Tax Rate 46.9%
Eff/ Tax Rate - 3 Yr. Avg. 202.9%
Payout Ratio 0%

NEXA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NEXA stock intrinsic value calculation we used $2449 million for the last fiscal year's total revenue generated by Nexa Resources S.A.. The default revenue input number comes from 0001 income statement of Nexa Resources S.A.. 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 NEXA stock valuation model: a) initial revenue growth rate of 24.7% 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 NEXA is calculated based on our internal credit rating of Nexa Resources S.A., 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 Nexa Resources S.A..
    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 NEXA stock the variable cost ratio is equal to 44%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $991 million in the base year in the intrinsic value calculation for NEXA 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 8.2% for Nexa Resources S.A..

Corporate tax rate of 27% is the nominal tax rate for Nexa Resources S.A.. 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 NEXA 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 NEXA are equal to 119.2%.

Life of production assets of 14.2 years is the average useful life of capital assets used in Nexa Resources S.A. 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 NEXA is equal to -4.6%. 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 - $2486.835 million for Nexa Resources S.A. - 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 132.689 million for Nexa Resources S.A. 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 Nexa Resources S.A. at the current share price and the inputted number of shares is $1.6 billion.

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