Intrinsic value of Loblaw Companies Limited - L

Previous Close

$66.35

  Intrinsic Value

$49.30

stock screener

  Rating & Target

sell

-26%

Previous close

$66.35

 
Intrinsic value

$49.30

 
Up/down potential

-26%

 
Rating

sell

We calculate the intrinsic value of L 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 25.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  47,313
  48,401
  49,645
  51,041
  52,589
  54,287
  56,135
  58,137
  60,293
  62,607
  65,082
  67,723
  70,536
  73,525
  76,696
  80,057
  83,615
  87,378
  91,353
  95,551
  99,980
  104,650
  109,574
  114,761
  120,225
  125,977
  132,031
  138,403
  145,106
  152,156
Variable operating expenses, $m
  23,885
  24,426
  25,043
  25,737
  26,505
  27,348
  28,266
  29,260
  30,331
  31,480
  32,320
  33,632
  35,028
  36,513
  38,088
  39,757
  41,524
  43,392
  45,366
  47,451
  49,650
  51,970
  54,415
  56,991
  59,704
  62,560
  65,567
  68,731
  72,060
  75,561
Fixed operating expenses, $m
  21,883
  22,364
  22,857
  23,359
  23,873
  24,398
  24,935
  25,484
  26,044
  26,617
  27,203
  27,801
  28,413
  29,038
  29,677
  30,330
  30,997
  31,679
  32,376
  33,088
  33,816
  34,560
  35,321
  36,098
  36,892
  37,703
  38,533
  39,381
  40,247
  41,132
Total operating expenses, $m
  45,768
  46,790
  47,900
  49,096
  50,378
  51,746
  53,201
  54,744
  56,375
  58,097
  59,523
  61,433
  63,441
  65,551
  67,765
  70,087
  72,521
  75,071
  77,742
  80,539
  83,466
  86,530
  89,736
  93,089
  96,596
  100,263
  104,100
  108,112
  112,307
  116,693
Operating income, $m
  1,545
  1,611
  1,745
  1,945
  2,210
  2,540
  2,934
  3,393
  3,917
  4,509
  5,559
  6,290
  7,094
  7,974
  8,932
  9,971
  11,094
  12,307
  13,611
  15,012
  16,513
  18,120
  19,839
  21,673
  23,629
  25,713
  27,931
  30,291
  32,799
  35,462
EBITDA, $m
  3,250
  3,347
  3,515
  3,754
  4,062
  4,439
  4,885
  5,399
  5,984
  6,640
  7,369
  8,174
  9,056
  10,019
  11,065
  12,198
  13,420
  14,737
  16,152
  17,669
  19,294
  21,031
  22,886
  24,865
  26,973
  29,217
  31,604
  34,141
  36,835
  39,695
Interest expense (income), $m
  474
  429
  446
  465
  487
  512
  540
  571
  604
  639
  678
  719
  764
  811
  861
  915
  972
  1,032
  1,096
  1,163
  1,234
  1,309
  1,388
  1,472
  1,560
  1,653
  1,751
  1,854
  1,962
  2,076
  2,196
Earnings before tax, $m
  1,115
  1,165
  1,280
  1,458
  1,698
  2,000
  2,363
  2,789
  3,278
  3,831
  4,840
  5,527
  6,283
  7,113
  8,017
  8,999
  10,063
  11,211
  12,448
  13,778
  15,204
  16,732
  18,366
  20,113
  21,976
  23,962
  26,078
  28,329
  30,723
  33,266
Tax expense, $m
  301
  315
  346
  394
  458
  540
  638
  753
  885
  1,034
  1,307
  1,492
  1,697
  1,920
  2,165
  2,430
  2,717
  3,027
  3,361
  3,720
  4,105
  4,518
  4,959
  5,430
  5,933
  6,470
  7,041
  7,649
  8,295
  8,982
Net income, $m
  814
  851
  934
  1,064
  1,239
  1,460
  1,725
  2,036
  2,393
  2,797
  3,533
  4,034
  4,587
  5,192
  5,852
  6,569
  7,346
  8,184
  9,087
  10,058
  11,099
  12,214
  13,408
  14,682
  16,042
  17,492
  19,037
  20,680
  22,427
  24,284

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  33,531
  34,303
  35,184
  36,174
  37,271
  38,474
  39,784
  41,202
  42,730
  44,370
  46,125
  47,997
  49,990
  52,108
  54,356
  56,738
  59,260
  61,926
  64,744
  67,718
  70,857
  74,168
  77,657
  81,333
  85,205
  89,282
  93,573
  98,088
  102,839
  107,835
Adjusted assets (=assets-cash), $m
  33,531
  34,303
  35,184
  36,174
  37,271
  38,474
  39,784
  41,202
  42,730
  44,370
  46,125
  47,997
  49,990
  52,108
  54,356
  56,738
  59,260
  61,926
  64,744
  67,718
  70,857
  74,168
  77,657
  81,333
  85,205
  89,282
  93,573
  98,088
  102,839
  107,835
Revenue / Adjusted assets
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
Average production assets, $m
  19,871
  20,328
  20,851
  21,437
  22,087
  22,800
  23,577
  24,417
  25,323
  26,295
  27,334
  28,444
  29,625
  30,880
  32,212
  33,624
  35,118
  36,699
  38,368
  40,131
  41,991
  43,953
  46,021
  48,200
  50,494
  52,910
  55,453
  58,129
  60,944
  63,905
Working capital, $m
  2,933
  3,001
  3,078
  3,165
  3,261
  3,366
  3,480
  3,604
  3,738
  3,882
  4,035
  4,199
  4,373
  4,559
  4,755
  4,964
  5,184
  5,417
  5,664
  5,924
  6,199
  6,488
  6,794
  7,115
  7,454
  7,811
  8,186
  8,581
  8,997
  9,434
Total debt, $m
  10,871
  11,346
  11,889
  12,499
  13,175
  13,916
  14,723
  15,597
  16,538
  17,548
  18,629
  19,782
  21,010
  22,315
  23,699
  25,167
  26,720
  28,362
  30,098
  31,930
  33,864
  35,903
  38,053
  40,317
  42,702
  45,214
  47,857
  50,638
  53,565
  56,643
Total liabilities, $m
  20,655
  21,130
  21,673
  22,283
  22,959
  23,700
  24,507
  25,381
  26,322
  27,332
  28,413
  29,566
  30,794
  32,099
  33,483
  34,951
  36,504
  38,146
  39,882
  41,714
  43,648
  45,687
  47,837
  50,101
  52,486
  54,998
  57,641
  60,422
  63,349
  66,427
Total equity, $m
  12,876
  13,172
  13,511
  13,891
  14,312
  14,774
  15,277
  15,822
  16,409
  17,038
  17,712
  18,431
  19,196
  20,010
  20,873
  21,787
  22,756
  23,780
  24,862
  26,004
  27,209
  28,480
  29,820
  31,232
  32,719
  34,284
  35,932
  37,666
  39,490
  41,409
Total liabilities and equity, $m
  33,531
  34,302
  35,184
  36,174
  37,271
  38,474
  39,784
  41,203
  42,731
  44,370
  46,125
  47,997
  49,990
  52,109
  54,356
  56,738
  59,260
  61,926
  64,744
  67,718
  70,857
  74,167
  77,657
  81,333
  85,205
  89,282
  93,573
  98,088
  102,839
  107,836
Debt-to-equity ratio
  0.840
  0.860
  0.880
  0.900
  0.920
  0.940
  0.960
  0.990
  1.010
  1.030
  1.050
  1.070
  1.090
  1.120
  1.140
  1.160
  1.170
  1.190
  1.210
  1.230
  1.240
  1.260
  1.280
  1.290
  1.310
  1.320
  1.330
  1.340
  1.360
  1.370
Adjusted equity ratio
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384
  0.384

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  814
  851
  934
  1,064
  1,239
  1,460
  1,725
  2,036
  2,393
  2,797
  3,533
  4,034
  4,587
  5,192
  5,852
  6,569
  7,346
  8,184
  9,087
  10,058
  11,099
  12,214
  13,408
  14,682
  16,042
  17,492
  19,037
  20,680
  22,427
  24,284
Depreciation, amort., depletion, $m
  1,705
  1,736
  1,770
  1,809
  1,852
  1,899
  1,951
  2,007
  2,067
  2,131
  1,810
  1,884
  1,962
  2,045
  2,133
  2,227
  2,326
  2,430
  2,541
  2,658
  2,781
  2,911
  3,048
  3,192
  3,344
  3,504
  3,672
  3,850
  4,036
  4,232
Funds from operations, $m
  2,520
  2,586
  2,705
  2,873
  3,092
  3,359
  3,676
  4,042
  4,459
  4,928
  5,343
  5,918
  6,549
  7,237
  7,986
  8,796
  9,671
  10,614
  11,628
  12,715
  13,880
  15,125
  16,455
  17,874
  19,386
  20,996
  22,709
  24,530
  26,464
  28,516
Change in working capital, $m
  58
  67
  77
  87
  96
  105
  115
  124
  134
  143
  153
  164
  174
  185
  197
  208
  221
  233
  246
  260
  275
  290
  305
  322
  339
  357
  375
  395
  416
  437
Cash from operations, $m
  2,462
  2,519
  2,628
  2,787
  2,996
  3,254
  3,561
  3,918
  4,326
  4,784
  5,190
  5,754
  6,374
  7,052
  7,789
  8,588
  9,451
  10,381
  11,381
  12,455
  13,605
  14,836
  16,150
  17,553
  19,048
  20,640
  22,334
  24,135
  26,048
  28,079
Maintenance CAPEX, $m
  -1,290
  -1,316
  -1,346
  -1,381
  -1,420
  -1,463
  -1,510
  -1,561
  -1,617
  -1,677
  -1,741
  -1,810
  -1,884
  -1,962
  -2,045
  -2,133
  -2,227
  -2,326
  -2,430
  -2,541
  -2,658
  -2,781
  -2,911
  -3,048
  -3,192
  -3,344
  -3,504
  -3,672
  -3,850
  -4,036
New CAPEX, $m
  -397
  -457
  -522
  -587
  -650
  -713
  -777
  -841
  -906
  -972
  -1,040
  -1,109
  -1,181
  -1,255
  -1,332
  -1,412
  -1,494
  -1,580
  -1,670
  -1,763
  -1,860
  -1,962
  -2,068
  -2,179
  -2,295
  -2,416
  -2,543
  -2,676
  -2,815
  -2,961
Cash from investing activities, $m
  -1,687
  -1,773
  -1,868
  -1,968
  -2,070
  -2,176
  -2,287
  -2,402
  -2,523
  -2,649
  -2,781
  -2,919
  -3,065
  -3,217
  -3,377
  -3,545
  -3,721
  -3,906
  -4,100
  -4,304
  -4,518
  -4,743
  -4,979
  -5,227
  -5,487
  -5,760
  -6,047
  -6,348
  -6,665
  -6,997
Free cash flow, $m
  775
  746
  759
  819
  926
  1,078
  1,275
  1,516
  1,803
  2,135
  2,409
  2,835
  3,310
  3,835
  4,412
  5,043
  5,730
  6,475
  7,281
  8,151
  9,087
  10,093
  11,171
  12,326
  13,561
  14,880
  16,287
  17,786
  19,383
  21,082
Issuance/(repayment) of debt, $m
  401
  475
  543
  610
  676
  741
  807
  874
  941
  1,010
  1,081
  1,153
  1,228
  1,305
  1,385
  1,467
  1,553
  1,643
  1,736
  1,832
  1,934
  2,039
  2,149
  2,265
  2,385
  2,511
  2,643
  2,781
  2,926
  3,078
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
Cash from financing (excl. dividends), $m  
  401
  475
  543
  610
  676
  741
  807
  874
  941
  1,010
  1,081
  1,153
  1,228
  1,305
  1,385
  1,467
  1,553
  1,643
  1,736
  1,832
  1,934
  2,039
  2,149
  2,265
  2,385
  2,511
  2,643
  2,781
  2,926
  3,078
Total cash flow (excl. dividends), $m
  1,176
  1,221
  1,302
  1,429
  1,602
  1,819
  2,082
  2,390
  2,744
  3,145
  3,489
  3,988
  4,537
  5,139
  5,796
  6,510
  7,283
  8,118
  9,017
  9,984
  11,021
  12,132
  13,321
  14,591
  15,946
  17,391
  18,930
  20,568
  22,309
  24,160
Retained Cash Flow (-), $m
  -249
  -296
  -339
  -380
  -421
  -462
  -503
  -545
  -587
  -630
  -674
  -719
  -765
  -813
  -863
  -915
  -968
  -1,024
  -1,082
  -1,142
  -1,205
  -1,271
  -1,340
  -1,412
  -1,487
  -1,565
  -1,648
  -1,734
  -1,824
  -1,919
Prev. year cash balance distribution, $m
  375
  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
  1,302
  925
  963
  1,049
  1,181
  1,357
  1,579
  1,845
  2,158
  2,516
  2,816
  3,269
  3,772
  4,326
  4,933
  5,595
  6,315
  7,094
  7,935
  8,841
  9,816
  10,861
  11,981
  13,179
  14,459
  15,826
  17,282
  18,834
  20,485
  22,241
Discount rate, %
  6.10
  6.41
  6.73
  7.06
  7.41
  7.79
  8.17
  8.58
  9.01
  9.46
  9.94
  10.43
  10.95
  11.50
  12.08
  12.68
  13.32
  13.98
  14.68
  15.41
  16.19
  16.99
  17.84
  18.74
  19.67
  20.66
  21.69
  22.77
  23.91
  25.11
PV of cash for distribution, $m
  1,227
  817
  792
  798
  826
  866
  911
  955
  992
  1,019
  993
  994
  976
  942
  892
  828
  754
  673
  588
  503
  420
  344
  274
  214
  162
  120
  86
  60
  41
  27
Current shareholders' claim on cash, %
  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

Loblaw Companies Limited is a Canada-based holding company. The Company operates through three segments: Retail, Financial Services and Choice Properties. The Company's Retail segment consists of corporate and franchise-owned retail food and Associate-owned drug stores, and includes in-store pharmacies and other health and beauty products, gas bars, apparel and other general merchandise. The Company's Financial Services segment provides credit card services, loyalty programs, insurance brokerage services, personal banking services, gift cards and telecommunication services. Choice Properties segment owns, develops and manages income-producing commercial properties across Canada. The Company has developed a line of control brand products and services that are sold or made available throughout its store network and are available to certain independent grocery customers. It markets control brand products under brand names, President's Choice, PC, no name, PC Organics and Blue Menu.

FINANCIAL RATIOS  of  Loblaw Companies Limited (L)

Valuation Ratios
P/E Ratio 27.1
Price to Sales 0.6
Price to Book 2
Price to Tangible Book
Price to Cash Flow 7.6
Price to Free Cash Flow 11.6
Growth Rates
Sales Growth Rate 2.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -1.4%
Cap. Spend. - 3 Yr. Gr. Rate 6.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 80.5%
Total Debt to Equity 89.6%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.8%
Ret/ On Assets - 3 Yr. Avg. 2.6%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 2.2%
Return On Equity 7.5%
Return On Equity - 3 Yr. Avg. 4.2%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 28.4%
Gross Margin - 3 Yr. Avg. 26.9%
EBITDA Margin 7.5%
EBITDA Margin - 3 Yr. Avg. 6.3%
Operating Margin 4.5%
Oper. Margin - 3 Yr. Avg. 3.2%
Pre-Tax Margin 3.1%
Pre-Tax Margin - 3 Yr. Avg. 1.8%
Net Profit Margin 2.1%
Net Profit Margin - 3 Yr. Avg. 1.2%
Effective Tax Rate 31.2%
Eff/ Tax Rate - 3 Yr. Avg. 33.9%
Payout Ratio 43.2%

L stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the L stock intrinsic value calculation we used $46385 million for the last fiscal year's total revenue generated by Loblaw Companies Limited. The default revenue input number comes from 2016 income statement of Loblaw Companies Limited. 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 L stock valuation model: a) initial revenue growth rate of 2% 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 6.1%, whose default value for L is calculated based on our internal credit rating of Loblaw Companies Limited, 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 Loblaw Companies Limited.
    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 L stock the variable cost ratio is equal to 50.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $21412 million in the base year in the intrinsic value calculation for L 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 4.1% for Loblaw Companies Limited.

Corporate tax rate of 27% is the nominal tax rate for Loblaw Companies Limited. 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 L 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 L are equal to 42%.

Life of production assets of 15.1 years is the average useful life of capital assets used in Loblaw Companies Limited 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 L is equal to 6.2%. 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 - $13002 million for Loblaw Companies Limited - 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 388.156 million for Loblaw Companies Limited 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 Loblaw Companies Limited at the current share price and the inputted number of shares is $25.8 billion.

RELATED COMPANIES Price Int.Val. Rating
WN George Weston 105.60 142.62  buy
MRU Metro Inc. 43.95 42.84  hold
BCE BCE Inc. 53.65 35.50  sell
NWC The North West 29.79 28.62  hold
MFC Manulife Finan 23.51 49.56  str.buy

CONTACT US       ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2018. All rigths reserved.