FMC Corp (FMC)
Market price: $4.58
2 valuation methods
- P / B: $11.91 to $16.97 (midpoint $13.81)
- EV / Gross Profit: $20.95 to $49.57 (midpoint $34.17)
How each method works
P / B: $11.91 to $16.97 (midpoint $13.81)
Values the stock at a peer multiple of its book (net asset) value — most meaningful for asset-heavy and financial companies whose balance sheet drives value.
- How it’s calculated
- We take book value per share (total assets minus total liabilities, from the latest balance sheet, divided by shares outstanding) and multiply it by the range of price-to-book multiples the peer group trades at.
- Why it fits this industry
- Where the balance sheet is the business — lenders, insurers, asset-heavy operators — the price the market pays for a dollar of net assets is a natural yardstick.
- Reading this bar
- The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. Asset-light companies (brands, software) legitimately trade far above book value, so for them a P/B bar well below the price is usually structure, not signal.
P / B = (0.91/1.06/1.30)× book_value_per_share 13.07 ≈ 11.91/13.81/16.97 (per_share)
EV / Gross Profit: $20.95 to $49.57 (midpoint $34.17)
Values the business at a peer multiple of gross profit — useful where reported operating costs vary a lot across peers but gross economics are comparable.
- How it’s calculated
- We take last-twelve-month gross profit (revenue minus the direct cost of the goods or services sold), multiply it by the peer range of EV/Gross-Profit multiples, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding.
- Why it fits this industry
- Gross profit sits between revenue and operating earnings: it credits the margin a company's products earn while ignoring overhead and investment choices that legitimately differ across peers.
- Reading this bar
- The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together.
EV / Gross Profit = (5.61/7.05/8.73)× gross_profit 1,148,700,000 ≈ 6,442,029,841.20/8,097,939,412.98/10,026,460,001.37 (enterprise_value); enterprise_value -> per share: equity (2,623,029,841.20/4,278,939,412.98/6,207,460,001.37) / 125,226,839 shares [EV bridge: minus net debt 3,794,700,000, minus minority interest & preferred 24,300,000]
4 methods not shown
- EV / EBITDA: EBITDA is non-positive — an EBITDA multiple yields no meaningful enterprise value (loss-making at the EBITDA line)
- EV / Revenue: implied equity value at the midpoint is non-positive (-1,210,259,696.43) — enterprise value does not exceed net debt; no price bar
- P / E: diluted EPS is non-positive — P/E is not meaningful for a loss-making period
- DCF (FCFF): base unlevered FCF is non-positive (-1,419,370,588.37) — nothing to discount; a standard FCFF DCF does not apply
Pre-profit company — earnings-based methods not meaningful.
Limited data — fewer than three valuation methods could be formed for this company; showing every method we can stand behind.
Debt is most of what funds this company — its shares are about 13% of its total enterprise value. The enterprise-value bar here (1) value the whole business and then subtract the debt, so a small difference in the business's value becomes a large one per share. That is arithmetic, not a fault in the estimate, but it is why those ranges are wide.