Intrinsic value of ATCO Ltd. Class I Non-voting Shares - ACO-X

Previous Close

$46.56

  Intrinsic Value

$142.26

stock screener

  Rating & Target

str. buy

+206%

Previous close

$46.56

 
Intrinsic value

$142.26

 
Up/down potential

+206%

 
Rating

str. buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ACO-X stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 5.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.08
  14.30
  13.37
  12.53
  11.78
  11.10
  10.49
  9.94
  9.45
  9.00
  8.60
  8.24
  7.92
  7.63
  7.36
  7.13
  6.91
  6.72
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
Revenue, $m
  4,045
  4,623
  5,242
  5,899
  6,593
  7,325
  8,094
  8,899
  9,739
  10,616
  11,530
  12,480
  13,468
  14,495
  15,563
  16,672
  17,825
  19,023
  20,269
  21,566
  22,915
  24,320
  25,783
  27,309
  28,899
  30,558
  32,290
  34,099
  35,988
  37,963
  40,027
Variable operating expenses, $m
 
  3,679
  4,170
  4,692
  5,244
  5,825
  6,436
  7,075
  7,743
  8,439
  9,164
  9,912
  10,697
  11,513
  12,361
  13,242
  14,157
  15,109
  16,099
  17,128
  18,200
  19,316
  20,478
  21,690
  22,953
  24,271
  25,646
  27,083
  28,583
  30,152
  31,791
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,732
  3,679
  4,170
  4,692
  5,244
  5,825
  6,436
  7,075
  7,743
  8,439
  9,164
  9,912
  10,697
  11,513
  12,361
  13,242
  14,157
  15,109
  16,099
  17,128
  18,200
  19,316
  20,478
  21,690
  22,953
  24,271
  25,646
  27,083
  28,583
  30,152
  31,791
Operating income, $m
  1,313
  944
  1,071
  1,207
  1,350
  1,500
  1,658
  1,824
  1,997
  2,177
  2,365
  2,568
  2,771
  2,982
  3,202
  3,430
  3,668
  3,914
  4,171
  4,437
  4,715
  5,004
  5,305
  5,619
  5,946
  6,288
  6,644
  7,016
  7,405
  7,811
  8,236
EBITDA, $m
  1,928
  1,607
  1,822
  2,050
  2,292
  2,546
  2,813
  3,093
  3,385
  3,690
  4,007
  4,337
  4,681
  5,038
  5,409
  5,794
  6,195
  6,612
  7,045
  7,495
  7,964
  8,452
  8,961
  9,491
  10,044
  10,621
  11,223
  11,851
  12,508
  13,194
  13,912
Interest expense (income), $m
  394
  391
  499
  615
  739
  871
  1,009
  1,154
  1,306
  1,465
  1,630
  1,803
  1,982
  2,169
  2,363
  2,564
  2,774
  2,991
  3,218
  3,453
  3,698
  3,953
  4,218
  4,494
  4,782
  5,083
  5,396
  5,723
  6,064
  6,421
  6,794
Earnings before tax, $m
  933
  553
  573
  591
  610
  630
  649
  670
  691
  713
  735
  765
  789
  814
  839
  866
  894
  923
  953
  984
  1,017
  1,051
  1,087
  1,125
  1,164
  1,205
  1,248
  1,293
  1,340
  1,390
  1,442
Tax expense, $m
  258
  149
  155
  160
  165
  170
  175
  181
  187
  192
  198
  207
  213
  220
  227
  234
  241
  249
  257
  266
  275
  284
  294
  304
  314
  325
  337
  349
  362
  375
  389
Net income, $m
  340
  404
  418
  432
  445
  460
  474
  489
  504
  520
  536
  559
  576
  594
  613
  632
  652
  674
  696
  718
  742
  767
  794
  821
  850
  880
  911
  944
  978
  1,015
  1,052

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  606
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  19,724
  21,809
  24,724
  27,823
  31,101
  34,553
  38,179
  41,974
  45,940
  50,076
  54,385
  58,867
  63,529
  68,374
  73,409
  78,641
  84,079
  89,732
  95,610
  101,725
  108,089
  114,716
  121,619
  128,814
  136,316
  144,143
  152,313
  160,844
  169,756
  179,070
  188,808
Adjusted assets (=assets-cash), $m
  19,118
  21,809
  24,724
  27,823
  31,101
  34,553
  38,179
  41,974
  45,940
  50,076
  54,385
  58,867
  63,529
  68,374
  73,409
  78,641
  84,079
  89,732
  95,610
  101,725
  108,089
  114,716
  121,619
  128,814
  136,316
  144,143
  152,313
  160,844
  169,756
  179,070
  188,808
Revenue / Adjusted assets
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
Average production assets, $m
  2,869
  3,278
  3,716
  4,182
  4,675
  5,194
  5,739
  6,309
  6,905
  7,527
  8,174
  8,848
  9,549
  10,277
  11,034
  11,820
  12,638
  13,487
  14,371
  15,290
  16,247
  17,243
  18,280
  19,362
  20,489
  21,666
  22,894
  24,176
  25,516
  26,916
  28,379
Working capital, $m
  395
  18
  21
  24
  26
  29
  32
  36
  39
  42
  46
  50
  54
  58
  62
  67
  71
  76
  81
  86
  92
  97
  103
  109
  116
  122
  129
  136
  144
  152
  160
Total debt, $m
  8,378
  10,388
  12,820
  15,405
  18,138
  21,018
  24,041
  27,207
  30,514
  33,964
  37,557
  41,295
  45,183
  49,224
  53,423
  57,787
  62,322
  67,036
  71,939
  77,039
  82,346
  87,873
  93,630
  99,631
  105,888
  112,415
  119,229
  126,344
  133,776
  141,544
  149,666
Total liabilities, $m
  16,178
  18,188
  20,620
  23,205
  25,938
  28,818
  31,841
  35,007
  38,314
  41,764
  45,357
  49,095
  52,983
  57,024
  61,223
  65,587
  70,122
  74,836
  79,739
  84,839
  90,146
  95,673
  101,430
  107,431
  113,688
  120,215
  127,029
  134,144
  141,576
  149,344
  157,466
Total equity, $m
  3,546
  3,620
  4,104
  4,619
  5,163
  5,736
  6,338
  6,968
  7,626
  8,313
  9,028
  9,772
  10,546
  11,350
  12,186
  13,054
  13,957
  14,895
  15,871
  16,886
  17,943
  19,043
  20,189
  21,383
  22,628
  23,928
  25,284
  26,700
  28,179
  29,726
  31,342
Total liabilities and equity, $m
  19,724
  21,808
  24,724
  27,824
  31,101
  34,554
  38,179
  41,975
  45,940
  50,077
  54,385
  58,867
  63,529
  68,374
  73,409
  78,641
  84,079
  89,731
  95,610
  101,725
  108,089
  114,716
  121,619
  128,814
  136,316
  144,143
  152,313
  160,844
  169,755
  179,070
  188,808
Debt-to-equity ratio
  2.363
  2.870
  3.120
  3.340
  3.510
  3.660
  3.790
  3.900
  4.000
  4.090
  4.160
  4.230
  4.280
  4.340
  4.380
  4.430
  4.470
  4.500
  4.530
  4.560
  4.590
  4.610
  4.640
  4.660
  4.680
  4.700
  4.720
  4.730
  4.750
  4.760
  4.780
Adjusted equity ratio
  0.157
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  340
  404
  418
  432
  445
  460
  474
  489
  504
  520
  536
  559
  576
  594
  613
  632
  652
  674
  696
  718
  742
  767
  794
  821
  850
  880
  911
  944
  978
  1,015
  1,052
Depreciation, amort., depletion, $m
  615
  663
  750
  844
  942
  1,046
  1,155
  1,269
  1,388
  1,512
  1,642
  1,770
  1,910
  2,055
  2,207
  2,364
  2,528
  2,697
  2,874
  3,058
  3,249
  3,449
  3,656
  3,872
  4,098
  4,333
  4,579
  4,835
  5,103
  5,383
  5,676
Funds from operations, $m
  1,605
  1,066
  1,168
  1,275
  1,387
  1,505
  1,629
  1,758
  1,892
  2,033
  2,178
  2,328
  2,486
  2,649
  2,820
  2,996
  3,180
  3,371
  3,570
  3,776
  3,992
  4,216
  4,450
  4,693
  4,947
  5,213
  5,490
  5,779
  6,082
  6,398
  6,728
Change in working capital, $m
  -185
  2
  2
  3
  3
  3
  3
  3
  3
  4
  4
  4
  4
  4
  4
  4
  5
  5
  5
  5
  5
  6
  6
  6
  6
  7
  7
  7
  8
  8
  8
Cash from operations, $m
  1,790
  1,064
  1,166
  1,272
  1,385
  1,502
  1,626
  1,755
  1,889
  2,029
  2,175
  2,324
  2,482
  2,645
  2,815
  2,992
  3,175
  3,366
  3,565
  3,771
  3,986
  4,210
  4,444
  4,687
  4,941
  5,206
  5,483
  5,772
  6,074
  6,390
  6,720
Maintenance CAPEX, $m
  0
  -574
  -656
  -743
  -836
  -935
  -1,039
  -1,148
  -1,262
  -1,381
  -1,505
  -1,635
  -1,770
  -1,910
  -2,055
  -2,207
  -2,364
  -2,528
  -2,697
  -2,874
  -3,058
  -3,249
  -3,449
  -3,656
  -3,872
  -4,098
  -4,333
  -4,579
  -4,835
  -5,103
  -5,383
New CAPEX, $m
  -1,433
  -410
  -438
  -466
  -493
  -519
  -545
  -571
  -596
  -622
  -648
  -674
  -701
  -728
  -757
  -786
  -817
  -850
  -884
  -919
  -957
  -996
  -1,038
  -1,081
  -1,128
  -1,176
  -1,228
  -1,282
  -1,340
  -1,400
  -1,464
Cash from investing activities, $m
  -1,611
  -984
  -1,094
  -1,209
  -1,329
  -1,454
  -1,584
  -1,719
  -1,858
  -2,003
  -2,153
  -2,309
  -2,471
  -2,638
  -2,812
  -2,993
  -3,181
  -3,378
  -3,581
  -3,793
  -4,015
  -4,245
  -4,487
  -4,737
  -5,000
  -5,274
  -5,561
  -5,861
  -6,175
  -6,503
  -6,847
Free cash flow, $m
  179
  81
  72
  63
  56
  49
  42
  36
  31
  26
  22
  16
  11
  7
  3
  -1
  -6
  -11
  -16
  -22
  -28
  -35
  -42
  -50
  -59
  -68
  -78
  -89
  -101
  -113
  -127
Issuance/(repayment) of debt, $m
  346
  2,239
  2,432
  2,584
  2,733
  2,880
  3,023
  3,166
  3,307
  3,450
  3,593
  3,739
  3,888
  4,041
  4,199
  4,364
  4,535
  4,714
  4,903
  5,100
  5,308
  5,527
  5,757
  6,000
  6,257
  6,528
  6,813
  7,115
  7,433
  7,768
  8,121
Issuance/(repurchase) of shares, $m
  0
  48
  66
  83
  99
  114
  128
  141
  154
  166
  179
  186
  198
  210
  223
  236
  250
  265
  280
  297
  314
  333
  352
  373
  396
  420
  445
  472
  501
  532
  564
Cash from financing (excl. dividends), $m  
  -236
  2,287
  2,498
  2,667
  2,832
  2,994
  3,151
  3,307
  3,461
  3,616
  3,772
  3,925
  4,086
  4,251
  4,422
  4,600
  4,785
  4,979
  5,183
  5,397
  5,622
  5,860
  6,109
  6,373
  6,653
  6,948
  7,258
  7,587
  7,934
  8,300
  8,685
Total cash flow (excl. dividends), $m
  -67
  2,368
  2,570
  2,731
  2,888
  3,042
  3,193
  3,343
  3,493
  3,642
  3,793
  3,940
  4,097
  4,258
  4,425
  4,599
  4,779
  4,968
  5,166
  5,375
  5,594
  5,824
  6,067
  6,324
  6,594
  6,879
  7,180
  7,498
  7,833
  8,186
  8,559
Retained Cash Flow (-), $m
  -190
  -451
  -484
  -514
  -544
  -573
  -602
  -630
  -658
  -687
  -715
  -744
  -774
  -804
  -836
  -869
  -903
  -938
  -976
  -1,015
  -1,056
  -1,100
  -1,146
  -1,194
  -1,245
  -1,299
  -1,356
  -1,416
  -1,479
  -1,546
  -1,616
Prev. year cash balance distribution, $m
 
  377
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,294
  2,086
  2,216
  2,344
  2,469
  2,592
  2,713
  2,834
  2,956
  3,078
  3,196
  3,323
  3,454
  3,589
  3,730
  3,877
  4,030
  4,191
  4,359
  4,537
  4,724
  4,921
  5,129
  5,349
  5,580
  5,824
  6,082
  6,353
  6,640
  6,942
Discount rate, %
 
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.18
  22.24
  23.35
  24.52
  25.74
  27.03
  28.38
  29.80
  31.29
  32.85
  34.50
  36.22
PV of cash for distribution, $m
 
  2,108
  1,748
  1,679
  1,590
  1,485
  1,368
  1,243
  1,114
  984
  856
  732
  618
  513
  418
  335
  264
  203
  153
  113
  82
  58
  40
  26
  17
  11
  7
  4
  2
  1
  1
Current shareholders' claim on cash, %
  100
  99.0
  97.8
  96.5
  95.2
  93.8
  92.4
  91.1
  89.8
  88.5
  87.3
  86.1
  84.9
  83.8
  82.7
  81.7
  80.7
  79.7
  78.7
  77.7
  76.8
  75.8
  74.9
  74.0
  73.1
  72.2
  71.3
  70.5
  69.6
  68.7
  67.9

Atco Ltd is a Canada-based company, which offers infrastructure solutions to customers around the world. The Company's segments include Structures & Logistics, Electricity, Pipelines & Liquids and Corporate & Other. Its Structures & Logistics segment consists of ATCO Structures & Logistics, ATCO Frontec and ATCO Sustainable Communities. Its Electricity segment consists of the generation, distribution and transmission businesses of ATCO Electric, ATCO Power and ATCO Power Australia. Its Pipelines & Liquids segment consists of ATCO Gas, ATCO Pipelines, ATCO Gas Australia, ATCO Energy Solutions and ATCO Pipelines Mexico. These businesses offer natural gas transmission, distribution and infrastructure development, natural gas liquids storage and processing, and industrial water solutions throughout Alberta and Western Australia. Its Corporate & Other segment consists of the commercial real estate owned by the Company in Alberta, business development activities associated with ATCO Energy.

FINANCIAL RATIOS  of  ATCO Ltd. Class I Non-voting Shares (ACO-X)

Valuation Ratios
P/E Ratio 15.7
Price to Sales 1.3
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 3
Price to Free Cash Flow 15
Growth Rates
Sales Growth Rate -2.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -19.1%
Cap. Spend. - 3 Yr. Gr. Rate -10.2%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 229.8%
Total Debt to Equity 236.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.2%
Ret/ On Assets - 3 Yr. Avg. 3.1%
Return On Total Capital 2.9%
Ret/ On T. Cap. - 3 Yr. Avg. 2.9%
Return On Equity 9.9%
Return On Equity - 3 Yr. Avg. 9.5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 48%
EBITDA Margin - 3 Yr. Avg. 43.7%
Operating Margin 32.5%
Oper. Margin - 3 Yr. Avg. 27.3%
Pre-Tax Margin 23.1%
Pre-Tax Margin - 3 Yr. Avg. 19.7%
Net Profit Margin 8.4%
Net Profit Margin - 3 Yr. Avg. 7.1%
Effective Tax Rate 27.7%
Eff/ Tax Rate - 3 Yr. Avg. 28.8%
Payout Ratio 38.5%

ACO-X stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ACO-X stock intrinsic value calculation we used $4045 million for the last fiscal year's total revenue generated by ATCO Ltd. Class I Non-voting Shares. The default revenue input number comes from 2016 income statement of ATCO Ltd. Class I Non-voting Shares. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ACO-X stock valuation model: a) initial revenue growth rate of 14.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.8%, whose default value for ACO-X is calculated based on our internal credit rating of ATCO Ltd. Class I Non-voting Shares, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of ATCO Ltd. Class I Non-voting Shares.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ACO-X stock the variable cost ratio is equal to 79.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ACO-X stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.8% for ATCO Ltd. Class I Non-voting Shares.

Corporate tax rate of 27% is the nominal tax rate for ATCO Ltd. Class I Non-voting Shares. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ACO-X stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ACO-X are equal to 70.9%.

Life of production assets of 4.8 years is the average useful life of capital assets used in ATCO Ltd. Class I Non-voting Shares operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ACO-X is equal to 0.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3546 million for ATCO Ltd. Class I Non-voting Shares - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 114.691 million for ATCO Ltd. Class I Non-voting Shares is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of ATCO Ltd. Class I Non-voting Shares at the current share price and the inputted number of shares is $5.3 billion.

RELATED COMPANIES Price Int.Val. Rating
TRP TransCanada Co 61.44 2.96  str.sell
CU Canadian Utili 39.65 71.13  str.buy
ENB Enbridge Inc. 49.38 418.86  str.buy
HSE Husky Energy I 15.78 4.21  str.sell
FTS Fortis Inc. 46.78 239.40  str.buy
SNC SNC-Lavalin Gr 57.82 51.16  hold
CNQ Canadian Natur 41.14 5.40  str.sell
TWM Tidewater Mids 1.40 0.29  str.sell
Financial statements of ACO-X
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.