Intrinsic value of Sibanye-Stillwater ADR - SBGL

Previous Close

$2.34

  Intrinsic Value

$1.82

stock screener

  Rating & Target

sell

-22%

Previous close

$2.34

 
Intrinsic value

$1.82

 
Up/down potential

-22%

 
Rating

sell

We calculate the intrinsic value of SBGL 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 0.5

 

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, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  5,937
  9,173
  13,719
  19,905
  28,084
  38,608
  51,824
  68,048
  87,561
  110,597
  137,336
  167,907
  202,384
  240,797
  283,135
  329,353
  379,388
  433,156
  490,572
  551,548
  616,006
  683,878
  755,112
  829,677
  907,560
  988,772
  1,073,348
  1,161,343
  1,252,839
  1,347,936
Variable operating expenses, $m
  4,755
  7,318
  10,918
  15,818
  22,296
  30,632
  41,100
  53,950
  69,406
  87,652
  108,780
  132,994
  160,302
  190,728
  224,262
  260,871
  300,501
  343,089
  388,567
  436,864
  487,919
  541,678
  598,101
  657,161
  718,850
  783,176
  850,165
  919,864
  992,335
  1,067,659
Fixed operating expenses, $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 operating expenses, $m
  4,755
  7,318
  10,918
  15,818
  22,296
  30,632
  41,100
  53,950
  69,406
  87,652
  108,780
  132,994
  160,302
  190,728
  224,262
  260,871
  300,501
  343,089
  388,567
  436,864
  487,919
  541,678
  598,101
  657,161
  718,850
  783,176
  850,165
  919,864
  992,335
  1,067,659
Operating income, $m
  1,183
  1,856
  2,801
  4,087
  5,788
  7,976
  10,724
  14,098
  18,155
  22,945
  28,556
  34,913
  42,082
  50,069
  58,872
  68,483
  78,886
  90,067
  102,005
  114,684
  128,087
  142,200
  157,011
  172,516
  188,710
  205,597
  223,182
  241,479
  260,504
  280,278
EBITDA, $m
  2,264
  3,498
  5,231
  7,591
  10,709
  14,723
  19,762
  25,949
  33,390
  42,174
  52,371
  64,028
  77,175
  91,823
  107,968
  125,593
  144,672
  165,176
  187,070
  210,323
  234,902
  260,784
  287,948
  316,382
  346,081
  377,050
  409,301
  442,856
  477,746
  514,010
Interest expense (income), $m
  33
  365
  639
  1,039
  1,600
  2,363
  3,373
  4,672
  6,303
  8,306
  10,715
  13,558
  16,859
  20,632
  24,888
  29,630
  34,856
  40,561
  46,737
  53,374
  60,461
  67,988
  75,944
  84,322
  93,115
  102,319
  111,933
  121,957
  132,397
  143,259
  154,553
Earnings before tax, $m
  818
  1,216
  1,762
  2,487
  3,424
  4,603
  6,052
  7,794
  9,849
  12,230
  14,998
  18,054
  21,450
  25,181
  29,243
  33,627
  38,326
  43,330
  48,631
  54,223
  60,099
  66,255
  72,689
  79,400
  86,391
  93,664
  101,225
  109,082
  117,245
  125,725
Tax expense, $m
  221
  328
  476
  672
  925
  1,243
  1,634
  2,104
  2,659
  3,302
  4,050
  4,875
  5,791
  6,799
  7,896
  9,079
  10,348
  11,699
  13,130
  14,640
  16,227
  17,889
  19,626
  21,438
  23,326
  25,289
  27,331
  29,452
  31,656
  33,946
Net income, $m
  597
  888
  1,286
  1,816
  2,500
  3,360
  4,418
  5,690
  7,190
  8,928
  10,949
  13,180
  15,658
  18,382
  21,347
  24,548
  27,978
  31,631
  35,501
  39,583
  43,872
  48,366
  53,063
  57,962
  63,065
  68,375
  73,894
  79,630
  85,589
  91,779

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
  7,267
  11,228
  16,792
  24,364
  34,374
  47,256
  63,432
  83,290
  107,174
  135,369
  168,098
  205,516
  247,716
  294,733
  346,554
  403,125
  464,367
  530,179
  600,455
  675,090
  753,985
  837,060
  924,250
  1,015,516
  1,110,844
  1,210,248
  1,313,767
  1,421,473
  1,533,462
  1,649,861
Adjusted assets (=assets-cash), $m
  7,267
  11,228
  16,792
  24,364
  34,374
  47,256
  63,432
  83,290
  107,174
  135,369
  168,098
  205,516
  247,716
  294,733
  346,554
  403,125
  464,367
  530,179
  600,455
  675,090
  753,985
  837,060
  924,250
  1,015,516
  1,110,844
  1,210,248
  1,313,767
  1,421,473
  1,533,462
  1,649,861
Revenue / Adjusted assets
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
Average production assets, $m
  5,148
  7,953
  11,894
  17,258
  24,348
  33,474
  44,931
  58,998
  75,916
  95,887
  119,070
  145,575
  175,467
  208,771
  245,478
  285,549
  328,929
  375,546
  425,326
  478,192
  534,077
  592,922
  654,682
  719,330
  786,854
  857,266
  930,593
  1,006,885
  1,086,211
  1,168,661
Working capital, $m
  2,969
  4,587
  6,859
  9,953
  14,042
  19,304
  25,912
  34,024
  43,781
  55,298
  68,668
  83,953
  101,192
  120,399
  141,567
  164,677
  189,694
  216,578
  245,286
  275,774
  308,003
  341,939
  377,556
  414,838
  453,780
  494,386
  536,674
  580,672
  626,419
  673,968
Total debt, $m
  3,632
  5,902
  9,090
  13,428
  19,164
  26,546
  35,814
  47,193
  60,879
  77,035
  95,788
  117,229
  141,409
  168,350
  198,043
  230,459
  265,550
  303,260
  343,529
  386,294
  431,502
  479,103
  529,063
  581,359
  635,982
  692,940
  752,257
  813,972
  878,142
  944,838
Total liabilities, $m
  4,164
  6,434
  9,622
  13,961
  19,696
  27,078
  36,346
  47,725
  61,411
  77,567
  96,320
  117,761
  141,941
  168,882
  198,575
  230,991
  266,082
  303,792
  344,061
  386,826
  432,034
  479,635
  529,595
  581,891
  636,514
  693,472
  752,789
  814,504
  878,674
  945,370
Total equity, $m
  3,103
  4,794
  7,170
  10,403
  14,678
  20,178
  27,085
  35,565
  45,763
  57,803
  71,778
  87,755
  105,775
  125,851
  147,979
  172,135
  198,285
  226,386
  256,394
  288,263
  321,952
  357,425
  394,655
  433,625
  474,331
  516,776
  560,979
  606,969
  654,788
  704,491
Total liabilities and equity, $m
  7,267
  11,228
  16,792
  24,364
  34,374
  47,256
  63,431
  83,290
  107,174
  135,370
  168,098
  205,516
  247,716
  294,733
  346,554
  403,126
  464,367
  530,178
  600,455
  675,089
  753,986
  837,060
  924,250
  1,015,516
  1,110,845
  1,210,248
  1,313,768
  1,421,473
  1,533,462
  1,649,861
Debt-to-equity ratio
  1.170
  1.230
  1.270
  1.290
  1.310
  1.320
  1.320
  1.330
  1.330
  1.330
  1.330
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
  1.340
Adjusted equity ratio
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  597
  888
  1,286
  1,816
  2,500
  3,360
  4,418
  5,690
  7,190
  8,928
  10,949
  13,180
  15,658
  18,382
  21,347
  24,548
  27,978
  31,631
  35,501
  39,583
  43,872
  48,366
  53,063
  57,962
  63,065
  68,375
  73,894
  79,630
  85,589
  91,779
Depreciation, amort., depletion, $m
  1,081
  1,642
  2,431
  3,503
  4,921
  6,746
  9,038
  11,851
  15,235
  19,229
  23,814
  29,115
  35,093
  41,754
  49,096
  57,110
  65,786
  75,109
  85,065
  95,638
  106,815
  118,584
  130,936
  143,866
  157,371
  171,453
  186,119
  201,377
  217,242
  233,732
Funds from operations, $m
  1,678
  2,530
  3,717
  5,319
  7,421
  10,107
  13,456
  17,541
  22,425
  28,157
  34,763
  42,295
  50,752
  60,136
  70,443
  81,658
  93,764
  106,740
  120,566
  135,221
  150,688
  166,951
  184,000
  201,828
  220,436
  239,828
  260,013
  281,007
  302,831
  325,511
Change in working capital, $m
  1,113
  1,618
  2,273
  3,093
  4,089
  5,262
  6,608
  8,112
  9,757
  11,518
  13,370
  15,285
  17,239
  19,207
  21,169
  23,109
  25,017
  26,884
  28,708
  30,488
  32,229
  33,936
  35,617
  37,282
  38,942
  40,606
  42,288
  43,998
  45,748
  47,549
Cash from operations, $m
  565
  912
  1,444
  2,226
  3,332
  4,844
  6,848
  9,429
  12,668
  16,639
  21,393
  27,009
  33,513
  40,930
  49,274
  58,548
  68,747
  79,856
  91,858
  104,733
  118,459
  133,015
  148,382
  164,546
  181,495
  199,221
  217,725
  237,009
  257,083
  277,963
Maintenance CAPEX, $m
  -643
  -1,030
  -1,591
  -2,379
  -3,452
  -4,870
  -6,695
  -8,986
  -11,800
  -15,183
  -19,177
  -23,814
  -29,115
  -35,093
  -41,754
  -49,096
  -57,110
  -65,786
  -75,109
  -85,065
  -95,638
  -106,815
  -118,584
  -130,936
  -143,866
  -157,371
  -171,453
  -186,119
  -201,377
  -217,242
New CAPEX, $m
  -1,931
  -2,806
  -3,941
  -5,364
  -7,091
  -9,125
  -11,458
  -14,066
  -16,918
  -19,972
  -23,183
  -26,505
  -29,892
  -33,304
  -36,707
  -40,072
  -43,380
  -46,617
  -49,779
  -52,867
  -55,885
  -58,845
  -61,760
  -64,647
  -67,525
  -70,411
  -73,327
  -76,292
  -79,327
  -82,450
Cash from investing activities, $m
  -2,574
  -3,836
  -5,532
  -7,743
  -10,543
  -13,995
  -18,153
  -23,052
  -28,718
  -35,155
  -42,360
  -50,319
  -59,007
  -68,397
  -78,461
  -89,168
  -100,490
  -112,403
  -124,888
  -137,932
  -151,523
  -165,660
  -180,344
  -195,583
  -211,391
  -227,782
  -244,780
  -262,411
  -280,704
  -299,692
Free cash flow, $m
  -2,009
  -2,923
  -4,087
  -5,517
  -7,210
  -9,150
  -11,304
  -13,624
  -16,050
  -18,516
  -20,967
  -23,309
  -25,494
  -27,468
  -29,187
  -30,619
  -31,743
  -32,547
  -33,031
  -33,199
  -33,065
  -32,645
  -31,962
  -31,038
  -29,896
  -28,561
  -27,055
  -25,401
  -23,620
  -21,729
Issuance/(repayment) of debt, $m
  1,559
  2,270
  3,188
  4,339
  5,736
  7,382
  9,269
  11,379
  13,686
  16,156
  18,754
  21,440
  24,181
  26,941
  29,693
  32,415
  35,091
  37,710
  40,268
  42,766
  45,207
  47,602
  49,960
  52,296
  54,623
  56,958
  59,317
  61,715
  64,170
  66,696
Issuance/(repurchase) of shares, $m
  568
  803
  1,089
  1,417
  1,775
  2,140
  2,489
  2,790
  3,009
  3,111
  3,026
  2,798
  2,361
  1,694
  780
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,127
  3,073
  4,277
  5,756
  7,511
  9,522
  11,758
  14,169
  16,695
  19,267
  21,780
  24,238
  26,542
  28,635
  30,473
  32,415
  35,091
  37,710
  40,268
  42,766
  45,207
  47,602
  49,960
  52,296
  54,623
  56,958
  59,317
  61,715
  64,170
  66,696
Total cash flow (excl. dividends), $m
  118
  150
  190
  240
  300
  372
  453
  545
  645
  752
  813
  929
  1,048
  1,167
  1,287
  1,796
  3,348
  5,163
  7,238
  9,567
  12,143
  14,956
  17,998
  21,258
  24,727
  28,397
  32,262
  36,314
  40,550
  44,967
Retained Cash Flow (-), $m
  -1,165
  -1,691
  -2,376
  -3,233
  -4,274
  -5,501
  -6,907
  -8,479
  -10,198
  -12,039
  -13,975
  -15,977
  -18,019
  -20,076
  -22,127
  -24,156
  -26,150
  -28,102
  -30,008
  -31,869
  -33,689
  -35,473
  -37,230
  -38,971
  -40,705
  -42,445
  -44,203
  -45,990
  -47,820
  -49,702
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
  -1,047
  -1,541
  -2,186
  -2,994
  -3,974
  -5,129
  -6,454
  -7,935
  -9,554
  -11,288
  -13,163
  -15,048
  -16,972
  -18,909
  -20,841
  -22,360
  -22,802
  -22,939
  -22,770
  -22,302
  -21,546
  -20,517
  -19,232
  -17,713
  -15,978
  -14,048
  -11,941
  -9,676
  -7,270
  -4,735
Discount rate, %
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for distribution, $m
  -973
  -1,319
  -1,712
  -2,127
  -2,541
  -2,923
  -3,245
  -3,484
  -3,623
  -3,652
  -3,588
  -3,410
  -3,151
  -2,834
  -2,481
  -2,078
  -1,625
  -1,230
  -901
  -637
  -434
  -285
  -180
  -109
  -62
  -34
  -17
  -8
  -3
  -1
Current shareholders' claim on cash, %
  70.5
  51.5
  38.9
  30.3
  24.4
  20.2
  17.1
  14.9
  13.3
  12.2
  11.3
  10.7
  10.3
  10.1
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0
  10.0

Sibanye Gold Limited is an independent, global precious metal mining company. The Company is engaged in producing a mix of metals that includes gold and the platinum group metals (PGMs). Its projects are grouped by two regions: the Southern Africa region and the Americas region. Its products include gold, platinum group metals and by-products. The Company’s gold project in the Southern Africa region includes Beatrix, Cooke, Driefontein, and Kloof. Its PGM projects include Kroondal, Rustenburg operations, Mimosa, and Platinum Mile. Its other projects in the Southern Africa region include Burnstone, Kloof Decline, Driefontein decline, The West Rand Tailings Retreatment Project (WRTRP) and The Southern Free State (SOFS) project. The Company’s PGM project in the Americas region includes East Boulder, Stillwater, and Columbus Metallurgical Complex. Its other projects in the Americas region include Blitz, Altar and Marathon.

FINANCIAL RATIOS  of  Sibanye-Stillwater ADR (SBGL)

Valuation Ratios
P/E Ratio 12
Price to Sales 1.4
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 10.1
Price to Free Cash Flow 176.3
Growth Rates
Sales Growth Rate 37.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 24.2%
Cap. Spend. - 3 Yr. Gr. Rate 7.4%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 49.3%
Total Debt to Equity 53.8%
Interest Coverage 11
Management Effectiveness
Return On Assets 11.5%
Ret/ On Assets - 3 Yr. Avg. 7.2%
Return On Total Capital 16.7%
Ret/ On T. Cap. - 3 Yr. Avg. 10.4%
Return On Equity 23.4%
Return On Equity - 3 Yr. Avg. 13.7%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 20.8%
Gross Margin - 3 Yr. Avg. 17.3%
EBITDA Margin 28.8%
EBITDA Margin - 3 Yr. Avg. 20.5%
Operating Margin 19.7%
Oper. Margin - 3 Yr. Avg. 14.3%
Pre-Tax Margin 14.5%
Pre-Tax Margin - 3 Yr. Avg. 9.7%
Net Profit Margin 11.8%
Net Profit Margin - 3 Yr. Avg. 7.4%
Effective Tax Rate 27.6%
Eff/ Tax Rate - 3 Yr. Avg. 34.5%
Payout Ratio 0%

SBGL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SBGL stock intrinsic value calculation we used $3710.92790171 million for the last fiscal year's total revenue generated by Sibanye-Stillwater ADR. The default revenue input number comes from 0001 income statement of Sibanye-Stillwater 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 SBGL stock valuation model: a) initial revenue growth rate of 60% 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 7.7%, whose default value for SBGL is calculated based on our internal credit rating of Sibanye-Stillwater 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 Sibanye-Stillwater 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 SBGL stock the variable cost ratio is equal to 80.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SBGL 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 17.6% for Sibanye-Stillwater ADR.

Corporate tax rate of 27% is the nominal tax rate for Sibanye-Stillwater 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 SBGL 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 SBGL are equal to 86.7%.

Life of production assets of 0 years is the average useful life of capital assets used in Sibanye-Stillwater 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 SBGL is equal to 50%. 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 - $1938.11833172 million for Sibanye-Stillwater 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 194.945 million for Sibanye-Stillwater 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 Sibanye-Stillwater ADR at the current share price and the inputted number of shares is $0.5 billion.

RELATED COMPANIES Price Int.Val. Rating
AU AngloGold Asha 9.46 37.21  str.buy
GFI Gold Fields AD 2.81 4.37  str.buy

COMPANY NEWS

▶ Sibanye-Stillwater Falls on 3rd-Quarter Production Results   [Nov-02-18 03:38PM  GuruFocus.com]
▶ [$$] South African miner Sibanye slides after 40% profit slump   [Oct-31-18 09:45PM  Financial Times]
▶ Why Gold Stocks Were on Fire Today   [Oct-11-18 04:56PM  Motley Fool]
▶ Top 3 Platinum Stocks for 2018   [Oct-01-18 06:00AM  Investopedia]
▶ Sibanye-Stillwater Posts a Profit   [Aug-24-18 01:53PM  GuruFocus.com]
▶ Gold Nears 19-Month Low: 5 Worst Stocks YTD   [Aug-20-18 05:24PM  InvestorPlace]
▶ [$$] Sibanye shares rise on upbeat trading statement   [Aug-02-18 11:48PM  Financial Times]
▶ The 5 Worst Gold Stocks of 2018 (So Far)   [06:10AM  Motley Fool]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.