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dc.contributor.authorSubramanya, Anshul
dc.date.accessioned2017-12-01T23:07:31Z
dc.date.available2017-12-01T23:07:31Z
dc.date.issued2017-07
dc.identifier.urihttp://jhir.library.jhu.edu/handle/1774.2/44596
dc.descriptionThe Studies in Applied Finance series is under the general direction of Prof. Steve H. Hanke, Co-Director of the Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise (hanke@jhu.edu) and Dr. Hesam Motlagh (hesamnmotlagh@gmail.com), a Fellow at the Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise. This working paper is one in a series on applied financial economics, which focuses on company valuations. The authors are mainly students at the Johns Hopkins University in Baltimore who have conducted their work at the Institute as undergraduate researchers.en_US
dc.description.abstractAdvanced Metallurgical Group (Euronext: AMG) is a global critical materials company headquartered in the Netherlands. AMG produces specialty metals, alloys, and high performance materials such as ferrovanadium antimony, tantalum, and niobium. They also engineer advanced vacuum furnace systems and operate vacuum heat treatment facilities for the transportation and energy industries. The market currently prices AMG at 26.42 Euros ($29.58 USD, market close 06/16/17, 0.89 Euros / Dollar Exchange Rate, Figure 1) per share. By using a Probabilistic Discounted Cash Flow Model (P-DCF), we estimate a free cash flow (FCF) per share of approximately $33.50, or 29.82 Euros. This estimate is based on expectations of AMG’s current product portfolio as well as their ongoing spodumene project, and suggests that the stock is currently trading at a 13.25% discount. AMG has also provided an EBITDA target of $200M+ by 2021,1 and reaching this target yields the estimated FCF per share mentioned above. Our analysis shows that AMG has the opportunities, leverage, and appropriate compensation metrics attain this target, so we rate AMG a buy.en_US
dc.language.isoen_USen_US
dc.publisherInstitute for Applied Economics, Global Health, and the Study of Business Enterpriseen_US
dc.relation.ispartofseriesStudies in Applied Finance;20
dc.subjectfinanceen_US
dc.subjectinvestment thesisen_US
dc.subjectAMGen_US
dc.subjectAdvanced Metallurgical Groupen_US
dc.subjectfree cash flowen_US
dc.subjectdiscounted cash flowen_US
dc.subjectdepreciationen_US
dc.subjectfinancial modelingen_US
dc.titleInvestment Thesis for Advanced Metallurgical Group (AEX: AMG)en_US
dc.typeWorking Paperen_US


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