Adecoagro S.A., an agricultural company, engages in farming, energy production, and land transformation activities. It operates through Farming; Sugar, Ethanol and Energy; and Land Transformation businesses. The company was founded in 2002 and is based in Luxembourg.
AGRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Adecoagro SA with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Adecoagro SA ranked in the 70th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 209.5%. In terms of the factors that were most noteworthy in this DCF analysis for AGRO, they are:
33% of the company's capital comes from equity, which is greater than merely 14.81% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 67% of the company's capital is sourced from debt; this is greater than 85.15% of the free cash flow producing stocks we're observing.
The weighted average cost of capital for the company is 11. This value is greater than 82.19% stocks in the Consumer Defensive sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BGS, ABEV, TSN, OLLI, and STKL can be thought of as valuation peers to AGRO, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
In this article we will check out the progression of hedge fund sentiment towards Adecoagro SA (NYSE:AGRO) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]
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