Intrinsic value of Innergex Renewable Energy Inc. - INE

Previous Close

$14.01

  Intrinsic Value

$4.18

stock screener

  Rating & Target

str. sell

-70%

Previous close

$14.01

 
Intrinsic value

$4.18

 
Up/down potential

-70%

 
Rating

str. sell

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

We calculate the intrinsic value of INE 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  18.62
  56.50
  51.35
  46.72
  42.54
  38.79
  35.41
  32.37
  29.63
  27.17
  24.95
  22.96
  21.16
  19.55
  18.09
  16.78
  15.60
  14.54
  13.59
  12.73
  11.96
  11.26
  10.64
  10.07
  9.56
  9.11
  8.70
  8.33
  7.99
  7.70
  7.43
Revenue, $m
  293
  459
  694
  1,018
  1,451
  2,014
  2,728
  3,611
  4,681
  5,952
  7,437
  9,145
  11,080
  13,245
  15,642
  18,267
  21,117
  24,188
  27,475
  30,972
  34,675
  38,580
  42,683
  46,982
  51,476
  56,164
  61,049
  66,133
  71,420
  76,916
  82,627
Variable operating expenses, $m
 
  352
  532
  780
  1,112
  1,542
  2,088
  2,764
  3,583
  4,556
  5,692
  6,998
  8,479
  10,136
  11,970
  13,979
  16,160
  18,510
  21,025
  23,702
  26,536
  29,524
  32,664
  35,954
  39,393
  42,981
  46,719
  50,609
  54,655
  58,861
  63,232
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
  167
  352
  532
  780
  1,112
  1,542
  2,088
  2,764
  3,583
  4,556
  5,692
  6,998
  8,479
  10,136
  11,970
  13,979
  16,160
  18,510
  21,025
  23,702
  26,536
  29,524
  32,664
  35,954
  39,393
  42,981
  46,719
  50,609
  54,655
  58,861
  63,232
Operating income, $m
  126
  107
  162
  238
  340
  472
  639
  847
  1,098
  1,396
  1,745
  2,147
  2,601
  3,109
  3,672
  4,288
  4,957
  5,678
  6,449
  7,270
  8,139
  9,056
  10,019
  11,028
  12,083
  13,183
  14,330
  15,523
  16,764
  18,054
  19,395
EBITDA, $m
  217
  261
  395
  580
  827
  1,148
  1,554
  2,057
  2,667
  3,392
  4,238
  5,211
  6,314
  7,548
  8,913
  10,409
  12,033
  13,783
  15,656
  17,649
  19,759
  21,984
  24,322
  26,772
  29,332
  32,004
  34,787
  37,684
  40,697
  43,829
  47,084
Interest expense (income), $m
  82
  93
  153
  239
  357
  516
  721
  982
  1,305
  1,696
  2,161
  2,704
  3,328
  4,036
  4,827
  5,704
  6,663
  7,705
  8,828
  10,030
  11,308
  12,662
  14,090
  15,590
  17,162
  18,805
  20,519
  22,304
  24,163
  26,096
  28,105
Earnings before tax, $m
  37
  14
  10
  0
  -17
  -43
  -82
  -135
  -207
  -300
  -416
  -557
  -727
  -927
  -1,156
  -1,416
  -1,706
  -2,028
  -2,379
  -2,760
  -3,169
  -3,606
  -4,071
  -4,562
  -5,079
  -5,621
  -6,189
  -6,781
  -7,399
  -8,042
  -8,710
Tax expense, $m
  5
  4
  3
  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
Net income, $m
  36
  10
  7
  0
  -17
  -43
  -82
  -135
  -207
  -300
  -416
  -557
  -727
  -927
  -1,156
  -1,416
  -1,706
  -2,028
  -2,379
  -2,760
  -3,169
  -3,606
  -4,071
  -4,562
  -5,079
  -5,621
  -6,189
  -6,781
  -7,399
  -8,042
  -8,710

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  56
  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
  3,604
  5,525
  8,362
  12,268
  17,487
  24,270
  32,864
  43,501
  56,392
  71,713
  89,607
  110,178
  133,493
  159,584
  188,454
  220,079
  254,419
  291,419
  331,019
  373,158
  417,776
  464,822
  514,257
  566,050
  620,190
  676,676
  735,528
  796,779
  860,479
  926,695
  995,509
Adjusted assets (=assets-cash), $m
  3,548
  5,525
  8,362
  12,268
  17,487
  24,270
  32,864
  43,501
  56,392
  71,713
  89,607
  110,178
  133,493
  159,584
  188,454
  220,079
  254,419
  291,419
  331,019
  373,158
  417,776
  464,822
  514,257
  566,050
  620,190
  676,676
  735,528
  796,779
  860,479
  926,695
  995,509
Revenue / Adjusted assets
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
  0.083
Average production assets, $m
  2,946
  4,610
  6,977
  10,236
  14,591
  20,251
  27,421
  36,297
  47,053
  59,837
  74,768
  91,932
  111,386
  133,157
  157,246
  183,634
  212,287
  243,160
  276,202
  311,362
  348,592
  387,847
  429,095
  472,312
  517,486
  564,618
  613,724
  664,832
  717,983
  773,233
  830,652
Working capital, $m
  32
  117
  178
  261
  372
  516
  698
  924
  1,198
  1,524
  1,904
  2,341
  2,836
  3,391
  4,004
  4,676
  5,406
  6,192
  7,034
  7,929
  8,877
  9,877
  10,927
  12,027
  13,178
  14,378
  15,629
  16,930
  18,283
  19,690
  21,153
Total debt, $m
  2,701
  4,358
  6,817
  10,204
  14,729
  20,610
  28,061
  37,284
  48,460
  61,743
  77,257
  95,092
  115,306
  137,927
  162,957
  190,377
  220,149
  252,228
  286,562
  323,096
  361,780
  402,569
  445,429
  490,334
  537,273
  586,247
  637,271
  690,375
  745,603
  803,013
  862,674
Total liabilities, $m
  3,134
  4,790
  7,249
  10,636
  15,161
  21,042
  28,493
  37,716
  48,892
  62,175
  77,689
  95,524
  115,738
  138,359
  163,389
  190,809
  220,581
  252,660
  286,994
  323,528
  362,212
  403,001
  445,861
  490,766
  537,705
  586,679
  637,703
  690,807
  746,035
  803,445
  863,106
Total equity, $m
  471
  735
  1,112
  1,632
  2,326
  3,228
  4,371
  5,786
  7,500
  9,538
  11,918
  14,654
  17,755
  21,225
  25,064
  29,271
  33,838
  38,759
  44,026
  49,630
  55,564
  61,821
  68,396
  75,285
  82,485
  89,998
  97,825
  105,972
  114,444
  123,250
  132,403
Total liabilities and equity, $m
  3,605
  5,525
  8,361
  12,268
  17,487
  24,270
  32,864
  43,502
  56,392
  71,713
  89,607
  110,178
  133,493
  159,584
  188,453
  220,080
  254,419
  291,419
  331,020
  373,158
  417,776
  464,822
  514,257
  566,051
  620,190
  676,677
  735,528
  796,779
  860,479
  926,695
  995,509
Debt-to-equity ratio
  5.735
  5.930
  6.130
  6.250
  6.330
  6.380
  6.420
  6.440
  6.460
  6.470
  6.480
  6.490
  6.490
  6.500
  6.500
  6.500
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.510
  6.520
  6.520
  6.520
Adjusted equity ratio
  0.117
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133
  0.133

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  36
  10
  7
  0
  -17
  -43
  -82
  -135
  -207
  -300
  -416
  -557
  -727
  -927
  -1,156
  -1,416
  -1,706
  -2,028
  -2,379
  -2,760
  -3,169
  -3,606
  -4,071
  -4,562
  -5,079
  -5,621
  -6,189
  -6,781
  -7,399
  -8,042
  -8,710
Depreciation, amort., depletion, $m
  91
  154
  233
  342
  487
  676
  915
  1,211
  1,569
  1,995
  2,493
  3,064
  3,713
  4,439
  5,242
  6,121
  7,076
  8,105
  9,207
  10,379
  11,620
  12,928
  14,303
  15,744
  17,250
  18,821
  20,457
  22,161
  23,933
  25,774
  27,688
Funds from operations, $m
  -61
  165
  240
  342
  470
  632
  833
  1,075
  1,362
  1,696
  2,077
  2,507
  2,985
  3,512
  4,086
  4,705
  5,370
  6,078
  6,828
  7,619
  8,451
  9,322
  10,232
  11,182
  12,171
  13,199
  14,269
  15,380
  16,534
  17,733
  18,978
Change in working capital, $m
  -138
  42
  60
  83
  111
  144
  183
  226
  274
  326
  380
  437
  495
  554
  613
  672
  730
  786
  841
  895
  948
  1,000
  1,050
  1,101
  1,150
  1,200
  1,250
  1,301
  1,354
  1,407
  1,462
Cash from operations, $m
  77
  122
  180
  259
  359
  488
  650
  849
  1,088
  1,370
  1,697
  2,070
  2,490
  2,958
  3,472
  4,033
  4,640
  5,292
  5,986
  6,724
  7,503
  8,322
  9,182
  10,081
  11,020
  11,999
  13,018
  14,078
  15,181
  16,326
  17,516
Maintenance CAPEX, $m
  0
  -98
  -154
  -233
  -341
  -486
  -675
  -914
  -1,210
  -1,568
  -1,995
  -2,492
  -3,064
  -3,713
  -4,439
  -5,242
  -6,121
  -7,076
  -8,105
  -9,207
  -10,379
  -11,620
  -12,928
  -14,303
  -15,744
  -17,250
  -18,821
  -20,457
  -22,161
  -23,933
  -25,774
New CAPEX, $m
  -366
  -1,664
  -2,367
  -3,259
  -4,355
  -5,660
  -7,171
  -8,876
  -10,756
  -12,784
  -14,931
  -17,164
  -19,454
  -21,771
  -24,089
  -26,388
  -28,653
  -30,873
  -33,042
  -35,160
  -37,229
  -39,256
  -41,248
  -43,217
  -45,174
  -47,132
  -49,106
  -51,108
  -53,151
  -55,251
  -57,418
Cash from investing activities, $m
  -255
  -1,762
  -2,521
  -3,492
  -4,696
  -6,146
  -7,846
  -9,790
  -11,966
  -14,352
  -16,926
  -19,656
  -22,518
  -25,484
  -28,528
  -31,630
  -34,774
  -37,949
  -41,147
  -44,367
  -47,608
  -50,876
  -54,176
  -57,520
  -60,918
  -64,382
  -67,927
  -71,565
  -75,312
  -79,184
  -83,192
Free cash flow, $m
  -178
  -1,640
  -2,341
  -3,233
  -4,337
  -5,658
  -7,195
  -8,941
  -10,877
  -12,982
  -15,228
  -17,587
  -20,028
  -22,526
  -25,055
  -27,596
  -30,134
  -32,658
  -35,161
  -37,643
  -40,105
  -42,553
  -44,994
  -47,438
  -49,897
  -52,383
  -54,908
  -57,487
  -60,132
  -62,857
  -65,677
Issuance/(repayment) of debt, $m
  215
  1,713
  2,460
  3,387
  4,525
  5,881
  7,451
  9,223
  11,176
  13,283
  15,514
  17,835
  20,214
  22,621
  25,030
  27,419
  29,773
  32,079
  34,333
  36,534
  38,684
  40,789
  42,859
  44,905
  46,939
  48,974
  51,024
  53,104
  55,228
  57,409
  59,662
Issuance/(repurchase) of shares, $m
  51
  253
  370
  520
  711
  946
  1,225
  1,550
  1,921
  2,337
  2,796
  3,293
  3,828
  4,397
  4,996
  5,622
  6,274
  6,949
  7,646
  8,364
  9,103
  9,864
  10,646
  11,450
  12,279
  13,134
  14,016
  14,927
  15,871
  16,848
  17,863
Cash from financing (excl. dividends), $m  
  265
  1,966
  2,830
  3,907
  5,236
  6,827
  8,676
  10,773
  13,097
  15,620
  18,310
  21,128
  24,042
  27,018
  30,026
  33,041
  36,047
  39,028
  41,979
  44,898
  47,787
  50,653
  53,505
  56,355
  59,218
  62,108
  65,040
  68,031
  71,099
  74,257
  77,525
Total cash flow (excl. dividends), $m
  86
  326
  489
  673
  899
  1,169
  1,480
  1,832
  2,220
  2,639
  3,082
  3,542
  4,014
  4,492
  4,970
  5,445
  5,912
  6,370
  6,818
  7,255
  7,682
  8,100
  8,511
  8,917
  9,321
  9,725
  10,132
  10,545
  10,967
  11,400
  11,847
Retained Cash Flow (-), $m
  -21
  -264
  -377
  -520
  -711
  -946
  -1,225
  -1,550
  -1,921
  -2,337
  -2,796
  -3,293
  -3,828
  -4,397
  -4,996
  -5,622
  -6,274
  -6,949
  -7,646
  -8,364
  -9,103
  -9,864
  -10,646
  -11,450
  -12,279
  -13,134
  -14,016
  -14,927
  -15,871
  -16,848
  -17,863
Prev. year cash balance distribution, $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 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
 
  63
  112
  153
  188
  223
  256
  282
  299
  301
  286
  248
  186
  95
  -25
  -177
  -361
  -578
  -828
  -1,109
  -1,421
  -1,764
  -2,135
  -2,533
  -2,958
  -3,409
  -3,884
  -4,382
  -4,904
  -5,448
  -6,015
Discount rate, %
 
  12.70
  13.34
  14.00
  14.70
  15.44
  16.21
  17.02
  17.87
  18.76
  19.70
  20.69
  21.72
  22.81
  23.95
  25.15
  26.40
  27.72
  29.11
  30.56
  32.09
  33.70
  35.38
  37.15
  39.01
  40.96
  43.01
  45.16
  47.41
  49.79
  52.27
PV of cash for distribution, $m
 
  55
  87
  104
  109
  109
  104
  94
  80
  64
  47
  31
  18
  7
  -1
  -6
  -9
  -9
  -8
  -7
  -5
  -4
  -3
  -2
  -1
  -1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  85.7
  74.1
  64.7
  57.0
  50.6
  45.3
  40.8
  37.0
  33.7
  30.9
  28.5
  26.3
  24.5
  22.8
  21.3
  20.0
  18.8
  17.7
  16.7
  15.8
  15.0
  14.2
  13.5
  12.9
  12.3
  11.7
  11.2
  10.7
  10.2
  9.8

Innergex Renewable Energy Inc is a Canada-based renewable power producer. The Company is a developer, owner and operator of renewable power-generating facilities with a focus on hydroelectric, wind power and solar photovoltaic (PV) projects. It operates through four segments: hydroelectric generation, wind power generation, solar power generation and site development. Through its hydroelectric, wind power and solar power generation segments, it sells electricity produced by its hydroelectric, wind farm and solar facilities to publicly owned utilities or other creditworthy counterparties. Through its site development segment, it analyzes sites and develops hydroelectric, wind and solar facilities up to the commissioning stage. Its portfolio of assets consists of interests in approximately three groups of power-generating project. It has over 30 facilities with a net installed capacity of over 710 megawatts. The Company owns interests in approximately 30 hydroelectric facilities.

FINANCIAL RATIOS  of  Innergex Renewable Energy Inc. (INE)

Valuation Ratios
P/E Ratio 42.1
Price to Sales 5.2
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 19.7
Price to Free Cash Flow -5.2
Growth Rates
Sales Growth Rate 18.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 23.2%
Cap. Spend. - 3 Yr. Gr. Rate 27.9%
Financial Strength
Quick Ratio 1
Current Ratio 0.4
LT Debt to Equity 552.4%
Total Debt to Equity 573.5%
Interest Coverage 1
Management Effectiveness
Return On Assets 3.2%
Ret/ On Assets - 3 Yr. Avg. 1.4%
Return On Total Capital 1.2%
Ret/ On T. Cap. - 3 Yr. Avg. -0.9%
Return On Equity 7.8%
Return On Equity - 3 Yr. Avg. -2.8%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 98.3%
Gross Margin - 3 Yr. Avg. 98.3%
EBITDA Margin 71.7%
EBITDA Margin - 3 Yr. Avg. 40.7%
Operating Margin 43%
Oper. Margin - 3 Yr. Avg. 36.5%
Pre-Tax Margin 12.6%
Pre-Tax Margin - 3 Yr. Avg. -19.2%
Net Profit Margin 12.3%
Net Profit Margin - 3 Yr. Avg. -7.5%
Effective Tax Rate 13.5%
Eff/ Tax Rate - 3 Yr. Avg. 19.3%
Payout Ratio 194.4%

INE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the INE stock intrinsic value calculation we used $293 million for the last fiscal year's total revenue generated by Innergex Renewable Energy Inc.. The default revenue input number comes from 2016 income statement of Innergex Renewable Energy Inc.. 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 INE stock valuation model: a) initial revenue growth rate of 56.5% 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 12.7%, whose default value for INE is calculated based on our internal credit rating of Innergex Renewable Energy Inc., 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 Innergex Renewable Energy Inc..
    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 INE stock the variable cost ratio is equal to 76.8%.

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 INE 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 Innergex Renewable Energy Inc..

Corporate tax rate of 27% is the nominal tax rate for Innergex Renewable Energy Inc.. 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 INE 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 INE are equal to 1005.3%.

Life of production assets of 32.5 years is the average useful life of capital assets used in Innergex Renewable Energy Inc. 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 INE is equal to 25.6%. 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 - $471 million for Innergex Renewable Energy Inc. - 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 108.333 million for Innergex Renewable Energy Inc. 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 Innergex Renewable Energy Inc. at the current share price and the inputted number of shares is $1.5 billion.

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Financial statements of INE
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