MCP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today, Molycorp Inc's DCF projected intrinsic value is $0.00. The stock price of Molycorp Inc is $0.35. Therefore, Molycorp Inc's Price to Intrinsic Value (DCF Projected) Ratio of today is 0.0.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.
In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):
Here Molycorp Inc's FCF(6 year avg) is calculate as
Molycorp Inc Quarterly Data
Add all the Free Cash Flow together and divide 6 will get Molycorp Inc's FCF(6 year avg) = $-347.00.
Molycorp Inc's DCF Projected Intrinsic Value for today is calculated as
|Intrinsic Value||=||(Growth Multiple||*||Free Cash Flow(6 year avg)||+||Total Equity(Dec14)||*||0.8)||/||Shares Outstanding|
* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.
The growth multiple is capped between 8.35 and 17.74.
Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.
Molycorp Inc's Price to DCF Projected Intrinsic Value Ratio for today is calculated as
|Price to DCF Projected Intrinsic Value||=||Share Price||/||DCF Projected Intrinsic Value|
Molycorp Inc Annual Data
Molycorp Inc Quarterly Data
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.