Intrinsic value of CCL Industries Inc. Unlimited Class B No - CCL-B

Previous Close

$57.98

  Intrinsic Value

$186.00

stock screener

  Rating & Target

str. buy

+221%

Previous close

$57.98

 
Intrinsic value

$186.00

 
Up/down potential

+221%

 
Rating

str. buy

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

We calculate the intrinsic value of CCL-B 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 10.3

 

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, %
  30.80
  30.50
  27.95
  25.66
  23.59
  21.73
  20.06
  18.55
  17.20
  15.98
  14.88
  13.89
  13.00
  12.20
  11.48
  10.83
  10.25
  9.73
  9.25
  8.83
  8.44
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
  6.20
Revenue, $m
  3,975
  5,187
  6,637
  8,340
  10,307
  12,547
  15,064
  17,859
  20,930
  24,274
  27,885
  31,759
  35,888
  40,267
  44,891
  49,754
  54,854
  60,188
  65,757
  71,562
  77,605
  83,892
  90,427
  97,219
  104,277
  111,612
  119,236
  127,162
  135,406
  143,983
  152,912
Variable operating expenses, $m
 
  4,401
  5,599
  7,006
  8,632
  10,484
  12,564
  14,874
  17,412
  20,176
  23,161
  26,249
  29,662
  33,282
  37,103
  41,123
  45,338
  49,747
  54,350
  59,148
  64,143
  69,338
  74,740
  80,354
  86,187
  92,250
  98,551
  105,102
  111,916
  119,005
  126,385
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
  3,450
  4,401
  5,599
  7,006
  8,632
  10,484
  12,564
  14,874
  17,412
  20,176
  23,161
  26,249
  29,662
  33,282
  37,103
  41,123
  45,338
  49,747
  54,350
  59,148
  64,143
  69,338
  74,740
  80,354
  86,187
  92,250
  98,551
  105,102
  111,916
  119,005
  126,385
Operating income, $m
  525
  787
  1,038
  1,334
  1,675
  2,063
  2,500
  2,985
  3,518
  4,098
  4,724
  5,509
  6,226
  6,985
  7,788
  8,631
  9,516
  10,441
  11,407
  12,414
  13,463
  14,553
  15,687
  16,865
  18,090
  19,362
  20,685
  22,060
  23,490
  24,978
  26,527
EBITDA, $m
  729
  1,063
  1,359
  1,708
  2,111
  2,570
  3,086
  3,658
  4,287
  4,972
  5,712
  6,505
  7,351
  8,248
  9,195
  10,191
  11,236
  12,328
  13,469
  14,658
  15,896
  17,183
  18,522
  19,913
  21,359
  22,861
  24,423
  26,046
  27,735
  29,492
  31,320
Interest expense (income), $m
  36
  56
  87
  124
  167
  218
  275
  339
  411
  489
  574
  667
  766
  871
  983
  1,101
  1,225
  1,356
  1,492
  1,634
  1,783
  1,937
  2,098
  2,264
  2,438
  2,618
  2,806
  3,000
  3,203
  3,414
  3,633
Earnings before tax, $m
  487
  731
  951
  1,210
  1,507
  1,846
  2,225
  2,646
  3,107
  3,609
  4,150
  4,843
  5,460
  6,114
  6,804
  7,530
  8,290
  9,086
  9,915
  10,780
  11,680
  12,616
  13,590
  14,601
  15,652
  16,744
  17,879
  19,059
  20,287
  21,564
  22,894
Tax expense, $m
  141
  197
  257
  327
  407
  498
  601
  714
  839
  974
  1,120
  1,308
  1,474
  1,651
  1,837
  2,033
  2,238
  2,453
  2,677
  2,911
  3,154
  3,406
  3,669
  3,942
  4,226
  4,521
  4,827
  5,146
  5,477
  5,822
  6,181
Net income, $m
  347
  533
  694
  883
  1,100
  1,347
  1,624
  1,931
  2,268
  2,634
  3,029
  3,535
  3,986
  4,463
  4,967
  5,497
  6,052
  6,633
  7,238
  7,870
  8,527
  9,210
  9,920
  10,659
  11,426
  12,223
  13,052
  13,913
  14,810
  15,742
  16,713

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  582
  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
  4,679
  5,348
  6,843
  8,598
  10,626
  12,935
  15,530
  18,411
  21,577
  25,024
  28,748
  32,741
  36,998
  41,513
  46,279
  51,293
  56,550
  62,050
  67,791
  73,775
  80,005
  86,486
  93,224
  100,226
  107,502
  115,064
  122,923
  131,095
  139,594
  148,436
  157,641
Adjusted assets (=assets-cash), $m
  4,097
  5,348
  6,843
  8,598
  10,626
  12,935
  15,530
  18,411
  21,577
  25,024
  28,748
  32,741
  36,998
  41,513
  46,279
  51,293
  56,550
  62,050
  67,791
  73,775
  80,005
  86,486
  93,224
  100,226
  107,502
  115,064
  122,923
  131,095
  139,594
  148,436
  157,641
Revenue / Adjusted assets
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
Average production assets, $m
  1,569
  2,049
  2,622
  3,294
  4,071
  4,956
  5,950
  7,054
  8,267
  9,588
  11,015
  12,545
  14,176
  15,906
  17,732
  19,653
  21,667
  23,774
  25,974
  28,267
  30,654
  33,137
  35,719
  38,401
  41,189
  44,087
  47,098
  50,229
  53,485
  56,873
  60,400
Working capital, $m
  754
  228
  292
  367
  454
  552
  663
  786
  921
  1,068
  1,227
  1,397
  1,579
  1,772
  1,975
  2,189
  2,414
  2,648
  2,893
  3,149
  3,415
  3,691
  3,979
  4,278
  4,588
  4,911
  5,246
  5,595
  5,958
  6,335
  6,728
Total debt, $m
  1,601
  2,483
  3,542
  4,784
  6,220
  7,855
  9,692
  11,732
  13,973
  16,414
  19,050
  21,878
  24,892
  28,088
  31,463
  35,012
  38,735
  42,628
  46,693
  50,930
  55,341
  59,929
  64,699
  69,657
  74,809
  80,162
  85,727
  91,512
  97,529
  103,790
  110,307
Total liabilities, $m
  2,904
  3,786
  4,845
  6,087
  7,523
  9,158
  10,995
  13,035
  15,276
  17,717
  20,353
  23,181
  26,195
  29,391
  32,766
  36,315
  40,038
  43,931
  47,996
  52,233
  56,644
  61,232
  66,002
  70,960
  76,112
  81,465
  87,030
  92,815
  98,832
  105,093
  111,610
Total equity, $m
  1,775
  1,562
  1,998
  2,511
  3,103
  3,777
  4,535
  5,376
  6,300
  7,307
  8,394
  9,560
  10,803
  12,122
  13,513
  14,977
  16,513
  18,119
  19,795
  21,542
  23,362
  25,254
  27,221
  29,266
  31,391
  33,599
  35,894
  38,280
  40,761
  43,343
  46,031
Total liabilities and equity, $m
  4,679
  5,348
  6,843
  8,598
  10,626
  12,935
  15,530
  18,411
  21,576
  25,024
  28,747
  32,741
  36,998
  41,513
  46,279
  51,292
  56,551
  62,050
  67,791
  73,775
  80,006
  86,486
  93,223
  100,226
  107,503
  115,064
  122,924
  131,095
  139,593
  148,436
  157,641
Debt-to-equity ratio
  0.902
  1.590
  1.770
  1.910
  2.000
  2.080
  2.140
  2.180
  2.220
  2.250
  2.270
  2.290
  2.300
  2.320
  2.330
  2.340
  2.350
  2.350
  2.360
  2.360
  2.370
  2.370
  2.380
  2.380
  2.380
  2.390
  2.390
  2.390
  2.390
  2.390
  2.400
Adjusted equity ratio
  0.291
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  347
  533
  694
  883
  1,100
  1,347
  1,624
  1,931
  2,268
  2,634
  3,029
  3,535
  3,986
  4,463
  4,967
  5,497
  6,052
  6,633
  7,238
  7,870
  8,527
  9,210
  9,920
  10,659
  11,426
  12,223
  13,052
  13,913
  14,810
  15,742
  16,713
Depreciation, amort., depletion, $m
  204
  276
  321
  375
  436
  507
  585
  673
  769
  874
  987
  996
  1,125
  1,262
  1,407
  1,560
  1,720
  1,887
  2,061
  2,243
  2,433
  2,630
  2,835
  3,048
  3,269
  3,499
  3,738
  3,986
  4,245
  4,514
  4,794
Funds from operations, $m
  387
  809
  1,016
  1,258
  1,537
  1,854
  2,210
  2,604
  3,037
  3,508
  4,017
  4,531
  5,111
  5,726
  6,375
  7,057
  7,772
  8,519
  9,300
  10,113
  10,959
  11,840
  12,755
  13,706
  14,695
  15,722
  16,790
  17,900
  19,054
  20,256
  21,506
Change in working capital, $m
  -177
  53
  64
  75
  87
  99
  111
  123
  135
  147
  159
  170
  182
  193
  203
  214
  224
  235
  245
  255
  266
  277
  288
  299
  311
  323
  335
  349
  363
  377
  393
Cash from operations, $m
  564
  756
  952
  1,183
  1,450
  1,755
  2,099
  2,481
  2,902
  3,361
  3,858
  4,360
  4,929
  5,533
  6,171
  6,843
  7,547
  8,285
  9,055
  9,858
  10,694
  11,563
  12,468
  13,408
  14,384
  15,399
  16,454
  17,551
  18,692
  19,878
  21,114
Maintenance CAPEX, $m
  0
  -125
  -163
  -208
  -261
  -323
  -393
  -472
  -560
  -656
  -761
  -874
  -996
  -1,125
  -1,262
  -1,407
  -1,560
  -1,720
  -1,887
  -2,061
  -2,243
  -2,433
  -2,630
  -2,835
  -3,048
  -3,269
  -3,499
  -3,738
  -3,986
  -4,245
  -4,514
New CAPEX, $m
  -235
  -480
  -573
  -673
  -777
  -885
  -994
  -1,104
  -1,213
  -1,321
  -1,427
  -1,530
  -1,631
  -1,730
  -1,826
  -1,921
  -2,014
  -2,107
  -2,200
  -2,293
  -2,387
  -2,483
  -2,581
  -2,683
  -2,788
  -2,897
  -3,011
  -3,131
  -3,256
  -3,388
  -3,527
Cash from investing activities, $m
  -797
  -605
  -736
  -881
  -1,038
  -1,208
  -1,387
  -1,576
  -1,773
  -1,977
  -2,188
  -2,404
  -2,627
  -2,855
  -3,088
  -3,328
  -3,574
  -3,827
  -4,087
  -4,354
  -4,630
  -4,916
  -5,211
  -5,518
  -5,836
  -6,166
  -6,510
  -6,869
  -7,242
  -7,633
  -8,041
Free cash flow, $m
  -233
  151
  217
  302
  412
  548
  712
  905
  1,129
  1,384
  1,670
  1,956
  2,303
  2,678
  3,083
  3,514
  3,973
  4,458
  4,968
  5,503
  6,063
  6,647
  7,256
  7,890
  8,549
  9,233
  9,944
  10,682
  11,449
  12,245
  13,073
Issuance/(repayment) of debt, $m
  533
  886
  1,058
  1,243
  1,436
  1,635
  1,837
  2,040
  2,242
  2,441
  2,636
  2,827
  3,014
  3,196
  3,375
  3,550
  3,722
  3,894
  4,065
  4,237
  4,411
  4,588
  4,770
  4,958
  5,152
  5,354
  5,565
  5,785
  6,017
  6,261
  6,517
Issuance/(repurchase) of shares, $m
  -23
  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 from financing (excl. dividends), $m  
  510
  886
  1,058
  1,243
  1,436
  1,635
  1,837
  2,040
  2,242
  2,441
  2,636
  2,827
  3,014
  3,196
  3,375
  3,550
  3,722
  3,894
  4,065
  4,237
  4,411
  4,588
  4,770
  4,958
  5,152
  5,354
  5,565
  5,785
  6,017
  6,261
  6,517
Total cash flow (excl. dividends), $m
  249
  1,038
  1,275
  1,545
  1,848
  2,182
  2,549
  2,945
  3,371
  3,825
  4,306
  4,783
  5,317
  5,875
  6,457
  7,064
  7,695
  8,352
  9,033
  9,740
  10,474
  11,236
  12,026
  12,847
  13,700
  14,587
  15,508
  16,468
  17,466
  18,506
  19,590
Retained Cash Flow (-), $m
  -153
  -365
  -436
  -513
  -592
  -674
  -758
  -841
  -924
  -1,007
  -1,087
  -1,166
  -1,243
  -1,318
  -1,392
  -1,464
  -1,535
  -1,606
  -1,676
  -1,747
  -1,819
  -1,892
  -1,967
  -2,045
  -2,125
  -2,208
  -2,295
  -2,386
  -2,482
  -2,582
  -2,688
Prev. year cash balance distribution, $m
 
  578
  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
 
  1,251
  838
  1,032
  1,255
  1,508
  1,791
  2,104
  2,446
  2,818
  3,219
  3,617
  4,073
  4,556
  5,065
  5,600
  6,160
  6,746
  7,356
  7,993
  8,655
  9,343
  10,059
  10,803
  11,576
  12,379
  13,213
  14,082
  14,984
  15,924
  16,902
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,200
  768
  898
  1,034
  1,169
  1,300
  1,421
  1,529
  1,619
  1,688
  1,718
  1,738
  1,732
  1,701
  1,644
  1,565
  1,468
  1,355
  1,231
  1,100
  966
  835
  708
  590
  482
  386
  302
  232
  174
  127
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

CCL Industries Inc. is involved in manufacture of labels, containers, consumer printable media products and inventory management and loss prevention solutions. It operates through four segments: Label, Avery, Checkpoint and Container. The Label segment includes production of pressure sensitive and extruded film materials for a range of decorative, instructional and functional applications for customers in the consumer packaging, healthcare, automotive and consumer durables markets. The Avery segment includes manufacturing and selling of consumer products, including labels, binders, dividers, sheet protectors and writing instruments in North America, Latin America, Asia Pacific and Europe. The Checkpoint segment includes manufacturing of technology-driven, loss-prevention, inventory management and labelling solutions, including radio-frequency and radio-frequency identification-based. The Container segment includes manufacturing of specialty containers for consumer products industry.

FINANCIAL RATIOS  of  CCL Industries Inc. Unlimited Class B No (CCL-B)

Valuation Ratios
P/E Ratio 29.4
Price to Sales 2.6
Price to Book 5.7
Price to Tangible Book
Price to Cash Flow 18.1
Price to Free Cash Flow 31
Growth Rates
Sales Growth Rate 30.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 36.6%
Cap. Spend. - 3 Yr. Gr. Rate 15.2%
Financial Strength
Quick Ratio 146
Current Ratio 0
LT Debt to Equity 90%
Total Debt to Equity 90.2%
Interest Coverage 15
Management Effectiveness
Return On Assets 9%
Ret/ On Assets - 3 Yr. Avg. 9.5%
Return On Total Capital 11.6%
Ret/ On T. Cap. - 3 Yr. Avg. 12.2%
Return On Equity 20.4%
Return On Equity - 3 Yr. Avg. 20.2%
Asset Turnover 1
Profitability Ratios
Gross Margin 29.4%
Gross Margin - 3 Yr. Avg. 28.2%
EBITDA Margin 18.3%
EBITDA Margin - 3 Yr. Avg. 18.8%
Operating Margin 13.2%
Oper. Margin - 3 Yr. Avg. 13.5%
Pre-Tax Margin 12.3%
Pre-Tax Margin - 3 Yr. Avg. 12.6%
Net Profit Margin 8.7%
Net Profit Margin - 3 Yr. Avg. 8.9%
Effective Tax Rate 29%
Eff/ Tax Rate - 3 Yr. Avg. 28.9%
Payout Ratio 20.2%

CCL-B stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CCL-B stock intrinsic value calculation we used $3975 million for the last fiscal year's total revenue generated by CCL Industries Inc. Unlimited Class B No. The default revenue input number comes from 2016 income statement of CCL Industries Inc. Unlimited Class B No. 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 CCL-B stock valuation model: a) initial revenue growth rate of 30.5% 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 4.3%, whose default value for CCL-B is calculated based on our internal credit rating of CCL Industries Inc. Unlimited Class B No, 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 CCL Industries Inc. Unlimited Class B No.
    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 CCL-B stock the variable cost ratio is equal to 85.5%.

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 CCL-B 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 3.5% for CCL Industries Inc. Unlimited Class B No.

Corporate tax rate of 27% is the nominal tax rate for CCL Industries Inc. Unlimited Class B No. 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 CCL-B 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 CCL-B are equal to 39.5%.

Life of production assets of 12.6 years is the average useful life of capital assets used in CCL Industries Inc. Unlimited Class B No 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 CCL-B is equal to 4.4%. 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 - $1775 million for CCL Industries Inc. Unlimited Class B No - 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 177.13 million for CCL Industries Inc. Unlimited Class B No 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 CCL Industries Inc. Unlimited Class B No at the current share price and the inputted number of shares is $10.3 billion.

RELATED COMPANIES Price Int.Val. Rating
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Financial statements of CCL-B
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.

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