Intrinsic value of ONEX Corporation Subordinate Voting Shar - ONEX

Previous Close

$90.92

  Intrinsic Value

$788.39

stock screener

  Rating & Target

str. buy

+767%

Previous close

$90.92

 
Intrinsic value

$788.39

 
Up/down potential

+767%

 
Rating

str. buy

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

We calculate the intrinsic value of ONEX 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, %
  14.44
  46.50
  42.35
  38.62
  35.25
  32.23
  29.51
  27.05
  24.85
  22.86
  21.08
  19.47
  18.02
  16.72
  15.55
  14.49
  13.54
  12.69
  11.92
  11.23
  10.61
  10.05
  9.54
  9.09
  8.68
  8.31
  7.98
  7.68
  7.41
  7.17
  6.95
Revenue, $m
  30,430
  44,580
  63,460
  87,964
  118,975
  157,318
  203,736
  258,856
  323,180
  397,073
  480,768
  574,375
  677,895
  791,244
  914,273
  1,046,787
  1,188,568
  1,339,398
  1,499,068
  1,667,397
  1,844,242
  2,029,504
  2,223,137
  2,425,149
  2,635,606
  2,854,633
  3,082,412
  3,319,183
  3,565,241
  3,820,937
  4,086,671
Variable operating expenses, $m
 
  39,323
  55,451
  76,385
  102,876
  135,632
  175,284
  222,372
  277,322
  340,446
  411,944
  490,669
  579,103
  675,934
  781,033
  894,235
  1,015,355
  1,144,204
  1,280,605
  1,424,403
  1,575,476
  1,733,739
  1,899,153
  2,071,725
  2,251,512
  2,438,619
  2,633,204
  2,835,469
  3,045,669
  3,264,101
  3,491,109
Fixed operating expenses, $m
 
  4,029
  4,130
  4,233
  4,339
  4,448
  4,559
  4,673
  4,790
  4,909
  5,032
  5,158
  5,287
  5,419
  5,554
  5,693
  5,836
  5,981
  6,131
  6,284
  6,441
  6,602
  6,767
  6,937
  7,110
  7,288
  7,470
  7,657
  7,848
  8,044
  8,246
Total operating expenses, $m
  31,063
  43,352
  59,581
  80,618
  107,215
  140,080
  179,843
  227,045
  282,112
  345,355
  416,976
  495,827
  584,390
  681,353
  786,587
  899,928
  1,021,191
  1,150,185
  1,286,736
  1,430,687
  1,581,917
  1,740,341
  1,905,920
  2,078,662
  2,258,622
  2,445,907
  2,640,674
  2,843,126
  3,053,517
  3,272,145
  3,499,355
Operating income, $m
  -632
  1,228
  3,879
  7,347
  11,760
  17,239
  23,893
  31,812
  41,069
  51,718
  63,792
  78,547
  93,505
  109,891
  127,685
  146,858
  167,378
  189,213
  212,332
  236,710
  262,325
  289,163
  317,217
  346,487
  376,984
  408,726
  441,739
  476,057
  511,724
  548,791
  587,317
EBITDA, $m
  1,067
  3,911
  7,173
  11,434
  16,851
  23,572
  31,728
  41,432
  52,771
  65,813
  80,597
  97,143
  115,452
  135,508
  157,285
  180,748
  205,858
  232,576
  260,865
  290,692
  322,033
  354,868
  389,191
  425,001
  462,312
  501,145
  541,532
  583,516
  627,149
  672,494
  719,623
Interest expense (income), $m
  1,302
  1,429
  2,080
  3,511
  5,369
  7,720
  10,626
  14,145
  18,324
  23,200
  28,801
  35,146
  42,242
  50,089
  58,682
  68,008
  78,054
  88,802
  100,236
  112,340
  125,100
  138,506
  152,550
  167,229
  182,543
  198,497
  215,100
  232,367
  250,316
  268,969
  288,352
Earnings before tax, $m
  -632
  -201
  1,799
  3,835
  6,391
  9,520
  13,266
  17,667
  22,745
  28,518
  34,991
  43,401
  51,263
  59,802
  69,003
  78,850
  89,324
  100,411
  112,097
  124,371
  137,225
  150,657
  164,666
  179,258
  194,442
  210,229
  226,638
  243,690
  261,408
  279,823
  298,964
Tax expense, $m
  62
  0
  486
  1,036
  1,726
  2,570
  3,582
  4,770
  6,141
  7,700
  9,448
  11,718
  13,841
  16,147
  18,631
  21,289
  24,117
  27,111
  30,266
  33,580
  37,051
  40,677
  44,460
  48,400
  52,499
  56,762
  61,192
  65,796
  70,580
  75,552
  80,720
Net income, $m
  -176
  -201
  1,313
  2,800
  4,666
  6,949
  9,684
  12,897
  16,604
  20,818
  25,543
  31,683
  37,422
  43,655
  50,372
  57,560
  65,207
  73,300
  81,831
  90,791
  100,174
  109,980
  120,206
  130,859
  141,942
  153,467
  165,446
  177,894
  190,828
  204,270
  218,244

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,411
  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
  57,979
  79,892
  113,727
  157,642
  213,217
  281,933
  365,118
  463,900
  579,176
  711,601
  861,592
  1,029,345
  1,214,865
  1,418,001
  1,638,482
  1,875,962
  2,130,051
  2,400,355
  2,686,502
  2,988,167
  3,305,093
  3,637,104
  3,984,116
  4,346,145
  4,723,309
  5,115,830
  5,524,036
  5,948,357
  6,389,321
  6,847,557
  7,323,784
Adjusted assets (=assets-cash), $m
  54,568
  79,892
  113,727
  157,642
  213,217
  281,933
  365,118
  463,900
  579,176
  711,601
  861,592
  1,029,345
  1,214,865
  1,418,001
  1,638,482
  1,875,962
  2,130,051
  2,400,355
  2,686,502
  2,988,167
  3,305,093
  3,637,104
  3,984,116
  4,346,145
  4,723,309
  5,115,830
  5,524,036
  5,948,357
  6,389,321
  6,847,557
  7,323,784
Revenue / Adjusted assets
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
Average production assets, $m
  15,777
  23,092
  32,872
  45,566
  61,629
  81,491
  105,535
  134,087
  167,407
  205,684
  249,038
  297,526
  351,150
  409,865
  473,593
  542,235
  615,678
  693,808
  776,517
  863,712
  955,317
  1,051,283
  1,151,585
  1,256,227
  1,365,244
  1,478,700
  1,596,690
  1,719,337
  1,846,795
  1,979,245
  2,116,896
Working capital, $m
  4,917
  3,076
  4,379
  6,070
  8,209
  10,855
  14,058
  17,861
  22,299
  27,398
  33,173
  39,632
  46,775
  54,596
  63,085
  72,228
  82,011
  92,418
  103,436
  115,050
  127,253
  140,036
  153,396
  167,335
  181,857
  196,970
  212,686
  229,024
  246,002
  263,645
  281,980
Total debt, $m
  30,994
  44,256
  74,707
  114,231
  164,248
  226,092
  300,959
  389,863
  493,611
  612,794
  747,786
  898,763
  1,065,732
  1,248,554
  1,446,987
  1,660,718
  1,889,399
  2,132,672
  2,390,205
  2,661,704
  2,946,937
  3,245,747
  3,558,058
  3,883,884
  4,223,331
  4,576,600
  4,943,986
  5,325,874
  5,722,742
  6,135,154
  6,563,758
Total liabilities, $m
  58,641
  71,903
  102,354
  141,878
  191,895
  253,739
  328,606
  417,510
  521,258
  640,441
  775,433
  926,410
  1,093,379
  1,276,201
  1,474,634
  1,688,365
  1,917,046
  2,160,319
  2,417,852
  2,689,351
  2,974,584
  3,273,394
  3,585,705
  3,911,531
  4,250,978
  4,604,247
  4,971,633
  5,353,521
  5,750,389
  6,162,801
  6,591,405
Total equity, $m
  -662
  7,989
  11,373
  15,764
  21,322
  28,193
  36,512
  46,390
  57,918
  71,160
  86,159
  102,934
  121,487
  141,800
  163,848
  187,596
  213,005
  240,035
  268,650
  298,817
  330,509
  363,710
  398,412
  434,615
  472,331
  511,583
  552,404
  594,836
  638,932
  684,756
  732,378
Total liabilities and equity, $m
  57,979
  79,892
  113,727
  157,642
  213,217
  281,932
  365,118
  463,900
  579,176
  711,601
  861,592
  1,029,344
  1,214,866
  1,418,001
  1,638,482
  1,875,961
  2,130,051
  2,400,354
  2,686,502
  2,988,168
  3,305,093
  3,637,104
  3,984,117
  4,346,146
  4,723,309
  5,115,830
  5,524,037
  5,948,357
  6,389,321
  6,847,557
  7,323,783
Debt-to-equity ratio
  -46.819
  5.540
  6.570
  7.250
  7.700
  8.020
  8.240
  8.400
  8.520
  8.610
  8.680
  8.730
  8.770
  8.810
  8.830
  8.850
  8.870
  8.880
  8.900
  8.910
  8.920
  8.920
  8.930
  8.940
  8.940
  8.950
  8.950
  8.950
  8.960
  8.960
  8.960
Adjusted equity ratio
  -0.075
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -176
  -201
  1,313
  2,800
  4,666
  6,949
  9,684
  12,897
  16,604
  20,818
  25,543
  31,683
  37,422
  43,655
  50,372
  57,560
  65,207
  73,300
  81,831
  90,791
  100,174
  109,980
  120,206
  130,859
  141,942
  153,467
  165,446
  177,894
  190,828
  204,270
  218,244
Depreciation, amort., depletion, $m
  1,699
  2,683
  3,294
  4,087
  5,091
  6,333
  7,835
  9,620
  11,702
  14,095
  16,804
  18,595
  21,947
  25,617
  29,600
  33,890
  38,480
  43,363
  48,532
  53,982
  59,707
  65,705
  71,974
  78,514
  85,328
  92,419
  99,793
  107,459
  115,425
  123,703
  132,306
Funds from operations, $m
  2,022
  2,482
  4,607
  6,887
  9,757
  13,282
  17,520
  22,517
  28,307
  34,913
  42,348
  50,278
  59,369
  69,272
  79,972
  91,450
  103,686
  116,663
  130,363
  144,773
  159,882
  175,685
  192,181
  209,373
  227,270
  245,886
  265,239
  285,352
  306,253
  327,973
  350,550
Change in working capital, $m
  -561
  976
  1,303
  1,691
  2,140
  2,646
  3,203
  3,803
  4,438
  5,099
  5,775
  6,459
  7,143
  7,821
  8,489
  9,143
  9,783
  10,407
  11,017
  11,615
  12,202
  12,783
  13,361
  13,939
  14,522
  15,113
  15,717
  16,337
  16,978
  17,643
  18,336
Cash from operations, $m
  2,583
  1,506
  3,304
  5,196
  7,617
  10,636
  14,317
  18,713
  23,868
  29,814
  36,573
  43,820
  52,226
  61,451
  71,483
  82,306
  93,904
  106,256
  119,346
  133,158
  147,679
  162,902
  178,820
  195,434
  212,749
  230,773
  249,522
  269,015
  289,275
  310,330
  332,214
Maintenance CAPEX, $m
  0
  -986
  -1,443
  -2,055
  -2,848
  -3,852
  -5,093
  -6,596
  -8,380
  -10,463
  -12,855
  -15,565
  -18,595
  -21,947
  -25,617
  -29,600
  -33,890
  -38,480
  -43,363
  -48,532
  -53,982
  -59,707
  -65,705
  -71,974
  -78,514
  -85,328
  -92,419
  -99,793
  -107,459
  -115,425
  -123,703
New CAPEX, $m
  -769
  -7,315
  -9,780
  -12,694
  -16,063
  -19,862
  -24,044
  -28,552
  -33,320
  -38,277
  -43,354
  -48,488
  -53,624
  -58,715
  -63,729
  -68,642
  -73,443
  -78,130
  -82,709
  -87,195
  -91,606
  -95,966
  -100,302
  -104,642
  -109,017
  -113,456
  -117,990
  -122,647
  -127,458
  -132,450
  -137,651
Cash from investing activities, $m
  -3,784
  -8,301
  -11,223
  -14,749
  -18,911
  -23,714
  -29,137
  -35,148
  -41,700
  -48,740
  -56,209
  -64,053
  -72,219
  -80,662
  -89,346
  -98,242
  -107,333
  -116,610
  -126,072
  -135,727
  -145,588
  -155,673
  -166,007
  -176,616
  -187,531
  -198,784
  -210,409
  -222,440
  -234,917
  -247,875
  -261,354
Free cash flow, $m
  -1,201
  -6,796
  -7,919
  -9,552
  -11,294
  -13,077
  -14,820
  -16,435
  -17,832
  -18,925
  -19,636
  -20,233
  -19,993
  -19,211
  -17,862
  -15,935
  -13,429
  -10,354
  -6,726
  -2,569
  2,092
  7,229
  12,813
  18,818
  25,218
  31,990
  39,114
  46,575
  54,358
  62,455
  70,861
Issuance/(repayment) of debt, $m
  1,706
  13,855
  30,451
  39,524
  50,017
  61,844
  74,867
  88,904
  103,748
  119,183
  134,992
  150,978
  166,968
  182,822
  198,433
  213,731
  228,680
  243,274
  257,532
  271,499
  285,233
  298,810
  312,311
  325,826
  339,447
  353,269
  367,386
  381,888
  396,868
  412,412
  428,605
Issuance/(repurchase) of shares, $m
  -315
  11,670
  2,070
  1,592
  892
  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  
  1,175
  25,525
  32,521
  41,116
  50,909
  61,844
  74,867
  88,904
  103,748
  119,183
  134,992
  150,978
  166,968
  182,822
  198,433
  213,731
  228,680
  243,274
  257,532
  271,499
  285,233
  298,810
  312,311
  325,826
  339,447
  353,269
  367,386
  381,888
  396,868
  412,412
  428,605
Total cash flow (excl. dividends), $m
  -47
  18,729
  24,603
  31,564
  39,615
  48,767
  60,046
  72,469
  85,916
  100,257
  115,355
  130,745
  146,975
  163,611
  180,571
  197,796
  215,251
  232,920
  250,806
  268,930
  287,325
  306,038
  325,124
  344,644
  364,665
  385,259
  406,500
  428,463
  451,226
  474,867
  499,465
Retained Cash Flow (-), $m
  442
  -11,670
  -3,383
  -4,392
  -5,557
  -6,872
  -8,319
  -9,878
  -11,528
  -13,243
  -14,999
  -16,775
  -18,552
  -20,314
  -22,048
  -23,748
  -25,409
  -27,030
  -28,615
  -30,167
  -31,693
  -33,201
  -34,701
  -36,203
  -37,716
  -39,252
  -40,821
  -42,432
  -44,096
  -45,824
  -47,623
Prev. year cash balance distribution, $m
 
  2,818
  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
 
  9,877
  21,219
  27,173
  34,057
  41,895
  51,728
  62,591
  74,389
  87,015
  100,356
  113,969
  128,423
  143,297
  158,523
  174,048
  189,842
  205,889
  222,191
  238,763
  255,633
  272,837
  290,423
  308,441
  326,948
  346,007
  365,679
  386,031
  407,130
  429,044
  451,843
Discount rate, %
 
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.71
  24.89
  26.14
  27.44
  28.81
  30.25
  31.77
  33.36
  35.02
  36.77
  38.61
  40.54
  42.57
  44.70
  46.93
  49.28
  51.75
  54.33
PV of cash for distribution, $m
 
  8,725
  16,368
  18,076
  19,283
  19,909
  20,325
  20,015
  19,037
  17,507
  15,577
  13,378
  11,162
  9,020
  7,058
  5,347
  3,921
  2,781
  1,907
  1,264
  808
  498
  296
  169
  93
  49
  25
  12
  5
  2
  1
Current shareholders' claim on cash, %
  100
  50.0
  39.7
  34.8
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0
  33.0

Onex Corporation is a private equity company. Its segments include Electronics Manufacturing Services, including Celestica Inc. that provides electronics manufacturing services; Healthcare Imaging, including Carestream Health, Inc. that provides healthcare information technology solutions; Health and Human Services, including Res-Care, Inc. that provides residential, educational and support services; Building Products, including JELD-WEN Holding, Inc. that manufactures windows and related products; Insurance Services, including USI Insurance Services and York Risk Services Holding Corp.; Packaging Products and Services, including SGS International, LLC and SIG Combibloc Group Holdings S.a r.l.; Business and Information Services, including Clarivate Analytics and Emerald Expositions, LLC; Food Retail and Restaurants, including Jack's Family Restaurants and Save-A-Lot; Credit Strategies, including Onex Credit Manager, and Other, including Survitec Group Limited.

FINANCIAL RATIOS  of  ONEX Corporation Subordinate Voting Shar (ONEX)

Valuation Ratios
P/E Ratio -53.2
Price to Sales 0.3
Price to Book -14.1
Price to Tangible Book
Price to Cash Flow 3.6
Price to Free Cash Flow 5.2
Growth Rates
Sales Growth Rate 14.4%
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 0.1%
Financial Strength
Quick Ratio 6
Current Ratio 0.1
LT Debt to Equity -4592.3%
Total Debt to Equity -4681.9%
Interest Coverage 1
Management Effectiveness
Return On Assets 2.4%
Ret/ On Assets - 3 Yr. Avg. 1.7%
Return On Total Capital -0.6%
Ret/ On T. Cap. - 3 Yr. Avg. -1.7%
Return On Equity 39.9%
Return On Equity - 3 Yr. Avg. -50%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 30%
Gross Margin - 3 Yr. Avg. 29.5%
EBITDA Margin 7.8%
EBITDA Margin - 3 Yr. Avg. 5.7%
Operating Margin -2.1%
Oper. Margin - 3 Yr. Avg. -3.4%
Pre-Tax Margin -2.1%
Pre-Tax Margin - 3 Yr. Avg. -3.4%
Net Profit Margin -0.6%
Net Profit Margin - 3 Yr. Avg. -1.4%
Effective Tax Rate -9.8%
Eff/ Tax Rate - 3 Yr. Avg. -11.3%
Payout Ratio -15.3%

ONEX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ONEX stock intrinsic value calculation we used $30430 million for the last fiscal year's total revenue generated by ONEX Corporation Subordinate Voting Shar. The default revenue input number comes from 2016 income statement of ONEX Corporation Subordinate Voting Shar. 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 ONEX stock valuation model: a) initial revenue growth rate of 46.5% 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 13.2%, whose default value for ONEX is calculated based on our internal credit rating of ONEX Corporation Subordinate Voting Shar, 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 ONEX Corporation Subordinate Voting Shar.
    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 ONEX stock the variable cost ratio is equal to 89.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3931 million in the base year in the intrinsic value calculation for ONEX 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 4.7% for ONEX Corporation Subordinate Voting Shar.

Corporate tax rate of 27% is the nominal tax rate for ONEX Corporation Subordinate Voting Shar. 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 ONEX 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 ONEX are equal to 51.8%.

Life of production assets of 16 years is the average useful life of capital assets used in ONEX Corporation Subordinate Voting Shar 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 ONEX is equal to 6.9%. 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 - $-662 million for ONEX Corporation Subordinate Voting Shar - 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 100.987 million for ONEX Corporation Subordinate Voting Shar 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 ONEX Corporation Subordinate Voting Shar at the current share price and the inputted number of shares is $9.2 billion.

RELATED COMPANIES Price Int.Val. Rating
IFP Interfor Corpo 22.81 2.25  str.sell
Financial statements of ONEX
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