Intrinsic value of Canfor Corporation - CFP

Previous Close

$24.14

  Intrinsic Value

$195.37

stock screener

  Rating & Target

str. buy

+709%

Previous close

$24.14

 
Intrinsic value

$195.37

 
Up/down potential

+709%

 
Rating

str. buy

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

We calculate the intrinsic value of CFP 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 3.2

 

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, %
  7.90
  15.90
  14.81
  13.83
  12.95
  12.15
  11.44
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
Revenue, $m
  4,235
  4,908
  5,635
  6,415
  7,245
  8,125
  9,055
  10,032
  11,057
  12,128
  13,247
  14,412
  15,626
  16,888
  18,201
  19,565
  20,982
  22,455
  23,986
  25,577
  27,233
  28,956
  30,749
  32,616
  34,562
  36,591
  38,706
  40,914
  43,219
  45,627
  48,143
Variable operating expenses, $m
 
  2,338
  2,681
  3,049
  3,441
  3,857
  4,295
  4,757
  5,240
  5,746
  6,274
  6,804
  7,377
  7,972
  8,592
  9,236
  9,905
  10,600
  11,323
  12,074
  12,856
  13,669
  14,515
  15,397
  16,316
  17,273
  18,272
  19,314
  20,402
  21,539
  22,726
Fixed operating expenses, $m
 
  2,007
  2,057
  2,109
  2,161
  2,215
  2,271
  2,327
  2,386
  2,445
  2,506
  2,569
  2,633
  2,699
  2,767
  2,836
  2,907
  2,979
  3,054
  3,130
  3,208
  3,289
  3,371
  3,455
  3,541
  3,630
  3,721
  3,814
  3,909
  4,007
  4,107
Total operating expenses, $m
  3,932
  4,345
  4,738
  5,158
  5,602
  6,072
  6,566
  7,084
  7,626
  8,191
  8,780
  9,373
  10,010
  10,671
  11,359
  12,072
  12,812
  13,579
  14,377
  15,204
  16,064
  16,958
  17,886
  18,852
  19,857
  20,903
  21,993
  23,128
  24,311
  25,546
  26,833
Operating income, $m
  303
  563
  897
  1,257
  1,643
  2,053
  2,489
  2,948
  3,431
  3,937
  4,466
  5,040
  5,616
  6,217
  6,842
  7,493
  8,170
  8,875
  9,609
  10,373
  11,169
  11,998
  12,862
  13,764
  14,705
  15,687
  16,714
  17,786
  18,908
  20,081
  21,309
EBITDA, $m
  545
  837
  1,208
  1,608
  2,036
  2,492
  2,975
  3,485
  4,020
  4,581
  5,168
  5,781
  6,420
  7,085
  7,778
  8,499
  9,249
  10,030
  10,842
  11,688
  12,569
  13,487
  14,443
  15,441
  16,482
  17,569
  18,704
  19,890
  21,130
  22,427
  23,784
Interest expense (income), $m
  22
  18
  29
  41
  54
  68
  83
  98
  115
  132
  150
  168
  188
  208
  229
  251
  274
  297
  322
  347
  374
  402
  430
  460
  491
  524
  558
  593
  630
  668
  709
Earnings before tax, $m
  268
  546
  868
  1,216
  1,588
  1,985
  2,406
  2,849
  3,316
  3,805
  4,316
  4,871
  5,428
  6,009
  6,613
  7,242
  7,897
  8,578
  9,287
  10,026
  10,795
  11,596
  12,432
  13,304
  14,214
  15,163
  16,156
  17,193
  18,278
  19,413
  20,601
Tax expense, $m
  64
  147
  234
  328
  429
  536
  650
  769
  895
  1,027
  1,165
  1,315
  1,466
  1,622
  1,786
  1,955
  2,132
  2,316
  2,508
  2,707
  2,915
  3,131
  3,357
  3,592
  3,838
  4,094
  4,362
  4,642
  4,935
  5,241
  5,562
Net income, $m
  151
  398
  634
  887
  1,160
  1,449
  1,756
  2,080
  2,421
  2,778
  3,151
  3,556
  3,963
  4,386
  4,828
  5,287
  5,765
  6,262
  6,780
  7,319
  7,880
  8,465
  9,075
  9,712
  10,376
  11,069
  11,794
  12,551
  13,343
  14,171
  15,038

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  157
  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
  3,277
  3,617
  4,153
  4,727
  5,339
  5,988
  6,673
  7,393
  8,148
  8,937
  9,762
  10,621
  11,515
  12,445
  13,413
  14,418
  15,462
  16,547
  17,676
  18,849
  20,069
  21,338
  22,659
  24,035
  25,469
  26,964
  28,524
  30,151
  31,849
  33,623
  35,477
Adjusted assets (=assets-cash), $m
  3,120
  3,617
  4,153
  4,727
  5,339
  5,988
  6,673
  7,393
  8,148
  8,937
  9,762
  10,621
  11,515
  12,445
  13,413
  14,418
  15,462
  16,547
  17,676
  18,849
  20,069
  21,338
  22,659
  24,035
  25,469
  26,964
  28,524
  30,151
  31,849
  33,623
  35,477
Revenue / Adjusted assets
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
  1.357
Average production assets, $m
  2,005
  2,322
  2,665
  3,034
  3,427
  3,843
  4,283
  4,745
  5,230
  5,737
  6,266
  6,817
  7,391
  7,988
  8,609
  9,254
  9,924
  10,621
  11,345
  12,098
  12,881
  13,696
  14,544
  15,427
  16,348
  17,307
  18,308
  19,353
  20,443
  21,582
  22,771
Working capital, $m
  485
  412
  473
  539
  609
  683
  761
  843
  929
  1,019
  1,113
  1,211
  1,313
  1,419
  1,529
  1,643
  1,762
  1,886
  2,015
  2,149
  2,288
  2,432
  2,583
  2,740
  2,903
  3,074
  3,251
  3,437
  3,630
  3,833
  4,044
Total debt, $m
  476
  730
  1,033
  1,359
  1,705
  2,072
  2,460
  2,867
  3,295
  3,742
  4,208
  4,694
  5,201
  5,727
  6,274
  6,843
  7,435
  8,049
  8,687
  9,351
  10,042
  10,760
  11,508
  12,287
  13,099
  13,945
  14,827
  15,748
  16,710
  17,714
  18,763
Total liabilities, $m
  1,793
  2,047
  2,350
  2,676
  3,022
  3,389
  3,777
  4,184
  4,612
  5,059
  5,525
  6,011
  6,518
  7,044
  7,591
  8,160
  8,752
  9,366
  10,004
  10,668
  11,359
  12,077
  12,825
  13,604
  14,416
  15,262
  16,144
  17,065
  18,027
  19,031
  20,080
Total equity, $m
  1,484
  1,570
  1,802
  2,052
  2,317
  2,599
  2,896
  3,208
  3,536
  3,879
  4,237
  4,609
  4,998
  5,401
  5,821
  6,257
  6,711
  7,182
  7,671
  8,180
  8,710
  9,261
  9,834
  10,431
  11,054
  11,703
  12,379
  13,085
  13,823
  14,593
  15,397
Total liabilities and equity, $m
  3,277
  3,617
  4,152
  4,728
  5,339
  5,988
  6,673
  7,392
  8,148
  8,938
  9,762
  10,620
  11,516
  12,445
  13,412
  14,417
  15,463
  16,548
  17,675
  18,848
  20,069
  21,338
  22,659
  24,035
  25,470
  26,965
  28,523
  30,150
  31,850
  33,624
  35,477
Debt-to-equity ratio
  0.321
  0.470
  0.570
  0.660
  0.740
  0.800
  0.850
  0.890
  0.930
  0.960
  0.990
  1.020
  1.040
  1.060
  1.080
  1.090
  1.110
  1.120
  1.130
  1.140
  1.150
  1.160
  1.170
  1.180
  1.190
  1.190
  1.200
  1.200
  1.210
  1.210
  1.220
Adjusted equity ratio
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  151
  398
  634
  887
  1,160
  1,449
  1,756
  2,080
  2,421
  2,778
  3,151
  3,556
  3,963
  4,386
  4,828
  5,287
  5,765
  6,262
  6,780
  7,319
  7,880
  8,465
  9,075
  9,712
  10,376
  11,069
  11,794
  12,551
  13,343
  14,171
  15,038
Depreciation, amort., depletion, $m
  242
  273
  311
  351
  393
  439
  486
  537
  589
  644
  702
  741
  803
  868
  936
  1,006
  1,079
  1,154
  1,233
  1,315
  1,400
  1,489
  1,581
  1,677
  1,777
  1,881
  1,990
  2,104
  2,222
  2,346
  2,475
Funds from operations, $m
  622
  671
  944
  1,238
  1,553
  1,888
  2,243
  2,617
  3,010
  3,422
  3,853
  4,297
  4,766
  5,255
  5,763
  6,293
  6,843
  7,416
  8,013
  8,634
  9,280
  9,954
  10,656
  11,389
  12,153
  12,951
  13,784
  14,655
  15,565
  16,517
  17,514
Change in working capital, $m
  38
  57
  61
  65
  70
  74
  78
  82
  86
  90
  94
  98
  102
  106
  110
  115
  119
  124
  129
  134
  139
  145
  151
  157
  163
  170
  178
  185
  194
  202
  211
Cash from operations, $m
  584
  615
  883
  1,173
  1,483
  1,814
  2,165
  2,535
  2,924
  3,332
  3,759
  4,199
  4,664
  5,149
  5,653
  6,178
  6,724
  7,293
  7,884
  8,500
  9,141
  9,809
  10,506
  11,232
  11,989
  12,780
  13,606
  14,469
  15,371
  16,315
  17,302
Maintenance CAPEX, $m
  0
  -218
  -252
  -290
  -330
  -372
  -418
  -466
  -516
  -568
  -624
  -681
  -741
  -803
  -868
  -936
  -1,006
  -1,079
  -1,154
  -1,233
  -1,315
  -1,400
  -1,489
  -1,581
  -1,677
  -1,777
  -1,881
  -1,990
  -2,104
  -2,222
  -2,346
New CAPEX, $m
  -234
  -317
  -344
  -369
  -393
  -416
  -440
  -462
  -485
  -507
  -529
  -551
  -574
  -597
  -621
  -645
  -670
  -697
  -724
  -753
  -783
  -815
  -848
  -883
  -920
  -960
  -1,001
  -1,044
  -1,090
  -1,139
  -1,190
Cash from investing activities, $m
  -318
  -535
  -596
  -659
  -723
  -788
  -858
  -928
  -1,001
  -1,075
  -1,153
  -1,232
  -1,315
  -1,400
  -1,489
  -1,581
  -1,676
  -1,776
  -1,878
  -1,986
  -2,098
  -2,215
  -2,337
  -2,464
  -2,597
  -2,737
  -2,882
  -3,034
  -3,194
  -3,361
  -3,536
Free cash flow, $m
  266
  80
  287
  514
  761
  1,025
  1,307
  1,607
  1,923
  2,257
  2,606
  2,967
  3,349
  3,748
  4,164
  4,597
  5,048
  5,517
  6,006
  6,514
  7,043
  7,594
  8,169
  8,768
  9,392
  10,044
  10,724
  11,435
  12,178
  12,954
  13,767
Issuance/(repayment) of debt, $m
  -130
  282
  303
  325
  346
  367
  388
  408
  427
  447
  467
  486
  506
  527
  547
  569
  591
  614
  639
  664
  690
  718
  748
  779
  812
  846
  883
  921
  961
  1,004
  1,049
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  -205
  282
  303
  325
  346
  367
  388
  408
  427
  447
  467
  486
  506
  527
  547
  569
  591
  614
  639
  664
  690
  718
  748
  779
  812
  846
  883
  921
  961
  1,004
  1,049
Total cash flow (excl. dividends), $m
  59
  362
  590
  839
  1,107
  1,392
  1,695
  2,015
  2,351
  2,704
  3,073
  3,453
  3,855
  4,275
  4,711
  5,166
  5,639
  6,132
  6,644
  7,178
  7,734
  8,313
  8,917
  9,546
  10,204
  10,890
  11,607
  12,356
  13,139
  13,958
  14,816
Retained Cash Flow (-), $m
  -153
  -215
  -232
  -249
  -266
  -282
  -297
  -313
  -328
  -343
  -358
  -373
  -388
  -404
  -420
  -436
  -453
  -471
  -490
  -509
  -529
  -551
  -573
  -597
  -622
  -649
  -677
  -706
  -737
  -770
  -805
Prev. year cash balance distribution, $m
 
  129
  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
 
  276
  358
  590
  841
  1,111
  1,398
  1,702
  2,023
  2,361
  2,715
  3,080
  3,467
  3,871
  4,292
  4,730
  5,186
  5,661
  6,155
  6,669
  7,204
  7,762
  8,343
  8,949
  9,581
  10,241
  10,930
  11,650
  12,402
  13,188
  14,011
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
 
  265
  327
  514
  693
  861
  1,014
  1,150
  1,265
  1,356
  1,423
  1,463
  1,480
  1,472
  1,441
  1,389
  1,318
  1,232
  1,133
  1,027
  915
  803
  692
  587
  488
  398
  319
  250
  192
  144
  105
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

Canfor Corporation is an integrated forest products company. The Company produces softwood lumber, pulp and paper products, remanufactured lumber products, engineered wood products, wood pellets and energy. Its segments include lumber, and pulp and paper. Its lumber segment includes logging operations, and manufacturing and sale of various grades, widths and lengths of lumber, engineered wood products, wood chips and wood pellets. Its lumber operations also include a finger-joint plant, two glulam plants, a whole-log chipping plant and a trucking division. The Pulp and Paper segment consists of three northern softwood market Kraft pulp mills and the Taylor pulp mill, all of which are owned and operated by Canfor Pulp Products Inc. (CPPI) in British Columbia. Its pulp and paper segment includes purchase of residual fiber, and production and sale of pulp and paper products, including Northern Bleached Softwood Kraft and Bleached Chemi-Thermo Mechanical Pulp, as well as energy revenues.

FINANCIAL RATIOS  of  Canfor Corporation (CFP)

Valuation Ratios
P/E Ratio 21.2
Price to Sales 0.8
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 5.5
Price to Free Cash Flow 9.2
Growth Rates
Sales Growth Rate 7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -2.5%
Cap. Spend. - 3 Yr. Gr. Rate -0.3%
Financial Strength
Quick Ratio 6
Current Ratio 0
LT Debt to Equity 30.2%
Total Debt to Equity 32.1%
Interest Coverage 13
Management Effectiveness
Return On Assets 5.1%
Ret/ On Assets - 3 Yr. Avg. 4.3%
Return On Total Capital 7.7%
Ret/ On T. Cap. - 3 Yr. Avg. 6.6%
Return On Equity 10.7%
Return On Equity - 3 Yr. Avg. 8.4%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 30.4%
Gross Margin - 3 Yr. Avg. 31.3%
EBITDA Margin 12.6%
EBITDA Margin - 3 Yr. Avg. 11.9%
Operating Margin 7.2%
Oper. Margin - 3 Yr. Avg. 6.9%
Pre-Tax Margin 6.3%
Pre-Tax Margin - 3 Yr. Avg. 6%
Net Profit Margin 3.6%
Net Profit Margin - 3 Yr. Avg. 3.1%
Effective Tax Rate 23.9%
Eff/ Tax Rate - 3 Yr. Avg. 21.9%
Payout Ratio 0%

CFP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CFP stock intrinsic value calculation we used $4235 million for the last fiscal year's total revenue generated by Canfor Corporation. The default revenue input number comes from 2016 income statement of Canfor Corporation. 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 CFP stock valuation model: a) initial revenue growth rate of 15.9% 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 CFP is calculated based on our internal credit rating of Canfor Corporation, 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 Canfor Corporation.
    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 CFP stock the variable cost ratio is equal to 47.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1958 million in the base year in the intrinsic value calculation for CFP 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% for Canfor Corporation.

Corporate tax rate of 27% is the nominal tax rate for Canfor Corporation. 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 CFP 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 CFP are equal to 47.3%.

Life of production assets of 9.2 years is the average useful life of capital assets used in Canfor Corporation 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 CFP is equal to 8.4%. 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 - $1484 million for Canfor Corporation - 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 132.772 million for Canfor Corporation 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 Canfor Corporation at the current share price and the inputted number of shares is $3.2 billion.

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Financial statements of CFP
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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