Monsanto

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Piper Jaffray	Brett Wong	brett.ws.wong@pjc.com
Monness Crespi Hardt	Chris L. Shaw	cshaw@mchny.com
BB&T Capital Markets	Christopher J. Kapsch	ckapsch@bbandtcm.com
Credit Suisse	Christopher S. Parkinson	christopher.parkinson@credit-suisse.com
Atlantic Equities	Colin Isaac	c.isaac@atlantic-equities.com
Deutsche Bank Research	David Begleiter	david.begleiter@db.com
Susquehanna Financial Group	Don Carson	don.carson@sig.com
Wells Fargo Securities	Frank J. Mitsch	frank.mitsch@wellsfargo.com
BMO Capital Markets	Joel Jackson	joel.jackson@bmo.com
Bernstein Research	Jonas Oxgaard	jonas.oxgaard@bernstein.com
Jefferies	Laurence Alexander	lalexander@jefferies.com
Stifel Nicolaus	Paul Massoud	pamassoud@stifel.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	2,606	2,226	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	2,129	1,769	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	87	154	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	16,743	12,306	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	15.56%	18.09%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	1,968	(3,702)	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	75.52%	-166.34%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	18.50%	12.19%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	6.97%	6.71%
Enterprise value	EV_Market	45,438	50,569	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	47,614	50,700
Long-Run Growth	g = IR x ROIC	11.75%	-30.08%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	26.77%	24.28%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	15.15%	17.67%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	3.03	3.59	20.21%	10.30%	19.32%	10.97%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	9.62	12.16	20.21%	10.30%	19.32%	10.97%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	17.44	22.72	20.21%	10.30%	19.32%	10.97%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	21.35	28.59	20.21%	10.30%	19.32%	10.97%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	11.33	14.77	20.21%	10.30%	19.32%	10.97%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	2.71	4.11	20.21%	10.30%	19.32%	10.97%

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