YPF Sociedad Anonima (NYSE: YPF) is an integrated oil and gas company headquartered in Buenos Aires, Argentina. Although the company’s cash flows have been volatile, an analyst has estimated a per share normalized FCFE of 7.05 Argentine pesos (ARS) for the year just ended. The real country return for Argentina is 7.30 percent; adjustments to the country return for YPF S.A. are an industry adjustment of + 0.80 percent, a size adjustment of −0.33 percent, and a leverage adjustment of −0.12 percent. The longterm real growth rate for Argentina is estimated to be 3.0 percent, and the real growth rate of YPF S.A. is expected to be about 0.5 percent below the country rate. The real required rate of return for YPF S.A. is

The real growth rate of FCFE is expected to be 2.5 percent (3.0 percent − 0.5 percent), so the value of one share is

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Country return (real) Industry adjustment Size adjustment Leverage adjustment Required rate of return 7.30% + 0.80% -0.33% - 0.12% 7.65%