FMG 1.56% $16.56 fortescue ltd

intrinsic value?

  1. 790 Posts.
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    Very glad that I hung on through the SP slump and now in the black. Trying to decide whether to stick with FMG for just the next month or the whole of this year - but I think I'll get out before the wall of IO supply from the slow movers hits the mkt in 2014.

    But one thing puzzles me. Can anyone explain to me why folks like Morningstar give FMG and intrinstic value of $2.20. Does it all just revolve around different predictions on future IO prices or is is to do with debt (or something else entirely)?
 
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