The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $357 M
Debt : $3,500 M
EBITDA : $811 M
Net Debt (Debt - Cash): $3,143 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Basic Materials
Industry: Agricultural Inputs
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.98
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $447 M
Average Revenue: $3,696 M
Free Cash Flow to Revenue : 12 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2023-12-31): $4,174 M
Revenue 4 Years Ago (2019-12-31): $4,610 M
Revenue Growth: -2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2023-12-31): $125 M
Share Count 5 Years Ago (2019-12-31): $130 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $3.75
Dividend Per Share (DPS): $2
Payout Ratio: 62%
Dividend Yield: 5%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 21%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $41
52-Week Low: $33
Threshold Price (15% Above 52-Week Low): $38
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,864 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above FMC Corporation (FMC) stock.
Value-Trades has assined P/E value 15. Since current year earning per share is $3.75.
The fair value of FMC Corporation (FMC) stock should be (15 x $3.75) = $56.25
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