Intrinsic value of George Weston Limited - WN

Previous Close

$105.60

  Intrinsic Value

$156.86

stock screener

  Rating & Target

buy

+49%

Previous close

$105.60

 
Intrinsic value

$156.86

 
Up/down potential

+49%

 
Rating

buy

We calculate the intrinsic value of WN 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 13.5

 

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
  48,959
  50,085
  51,372
  52,817
  54,419
  56,176
  58,089
  60,160
  62,391
  64,785
  67,347
  70,080
  72,990
  76,083
  79,365
  82,843
  86,525
  90,418
  94,532
  98,875
  103,458
  108,292
  113,386
  118,754
  124,408
  130,360
  136,626
  143,219
  150,155
  157,450
Variable operating expenses, $m
  34,507
  35,291
  36,187
  37,192
  38,307
  39,529
  40,861
  42,302
  43,855
  45,521
  46,867
  48,769
  50,794
  52,947
  55,231
  57,651
  60,213
  62,923
  65,785
  68,808
  71,998
  75,361
  78,907
  82,642
  86,576
  90,719
  95,079
  99,667
  104,494
  109,571
Fixed operating expenses, $m
  12,472
  12,747
  13,027
  13,314
  13,607
  13,906
  14,212
  14,525
  14,844
  15,171
  15,505
  15,846
  16,194
  16,551
  16,915
  17,287
  17,667
  18,056
  18,453
  18,859
  19,274
  19,698
  20,131
  20,574
  21,027
  21,489
  21,962
  22,445
  22,939
  23,444
Total operating expenses, $m
  46,979
  48,038
  49,214
  50,506
  51,914
  53,435
  55,073
  56,827
  58,699
  60,692
  62,372
  64,615
  66,988
  69,498
  72,146
  74,938
  77,880
  80,979
  84,238
  87,667
  91,272
  95,059
  99,038
  103,216
  107,603
  112,208
  117,041
  122,112
  127,433
  133,015
Operating income, $m
  1,979
  2,047
  2,158
  2,311
  2,505
  2,740
  3,016
  3,333
  3,692
  4,093
  4,975
  5,465
  6,001
  6,586
  7,220
  7,905
  8,644
  9,440
  10,293
  11,208
  12,187
  13,233
  14,349
  15,538
  16,805
  18,152
  19,585
  21,106
  22,722
  24,435
EBITDA, $m
  3,813
  3,913
  4,060
  4,254
  4,494
  4,779
  5,110
  5,486
  5,908
  6,378
  6,897
  7,465
  8,084
  8,757
  9,484
  10,269
  11,113
  12,019
  12,991
  14,029
  15,139
  16,323
  17,584
  18,926
  20,354
  21,872
  23,483
  25,193
  27,006
  28,928
Interest expense (income), $m
  570
  490
  515
  543
  576
  613
  654
  698
  747
  800
  857
  918
  983
  1,053
  1,127
  1,206
  1,289
  1,378
  1,472
  1,571
  1,676
  1,786
  1,903
  2,026
  2,156
  2,293
  2,437
  2,588
  2,748
  2,916
  3,093
Earnings before tax, $m
  1,490
  1,533
  1,615
  1,735
  1,892
  2,086
  2,317
  2,586
  2,892
  3,237
  4,057
  4,482
  4,949
  5,459
  6,014
  6,616
  7,266
  7,968
  8,722
  9,533
  10,401
  11,330
  12,322
  13,382
  14,512
  15,715
  16,996
  18,358
  19,806
  21,343
Tax expense, $m
  402
  414
  436
  468
  511
  563
  626
  698
  781
  874
  1,095
  1,210
  1,336
  1,474
  1,624
  1,786
  1,962
  2,151
  2,355
  2,574
  2,808
  3,059
  3,327
  3,613
  3,918
  4,243
  4,589
  4,957
  5,348
  5,763
Net income, $m
  1,087
  1,119
  1,179
  1,267
  1,381
  1,523
  1,692
  1,888
  2,111
  2,363
  2,962
  3,272
  3,613
  3,985
  4,390
  4,830
  5,305
  5,817
  6,367
  6,959
  7,592
  8,271
  8,995
  9,769
  10,594
  11,472
  12,407
  13,401
  14,458
  15,580

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
  36,079
  36,909
  37,857
  38,922
  40,102
  41,397
  42,807
  44,333
  45,977
  47,741
  49,629
  51,643
  53,788
  56,067
  58,486
  61,049
  63,762
  66,631
  69,662
  72,863
  76,241
  79,802
  83,557
  87,512
  91,679
  96,065
  100,682
  105,541
  110,652
  116,028
Adjusted assets (=assets-cash), $m
  36,079
  36,909
  37,857
  38,922
  40,102
  41,397
  42,807
  44,333
  45,977
  47,741
  49,629
  51,643
  53,788
  56,067
  58,486
  61,049
  63,762
  66,631
  69,662
  72,863
  76,241
  79,802
  83,557
  87,512
  91,679
  96,065
  100,682
  105,541
  110,652
  116,028
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
Average production assets, $m
  20,954
  21,436
  21,987
  22,606
  23,291
  24,043
  24,862
  25,748
  26,703
  27,728
  28,824
  29,994
  31,240
  32,564
  33,968
  35,457
  37,033
  38,699
  40,460
  42,319
  44,280
  46,349
  48,529
  50,827
  53,247
  55,794
  58,476
  61,298
  64,266
  67,389
Working capital, $m
  2,986
  3,055
  3,134
  3,222
  3,320
  3,427
  3,543
  3,670
  3,806
  3,952
  4,108
  4,275
  4,452
  4,641
  4,841
  5,053
  5,278
  5,516
  5,766
  6,031
  6,311
  6,606
  6,917
  7,244
  7,589
  7,952
  8,334
  8,736
  9,159
  9,604
Total debt, $m
  11,966
  12,634
  13,396
  14,252
  15,201
  16,242
  17,376
  18,603
  19,924
  21,343
  22,861
  24,480
  26,204
  28,037
  29,981
  32,042
  34,223
  36,530
  38,968
  41,541
  44,256
  47,120
  50,139
  53,319
  56,669
  60,195
  63,907
  67,814
  71,923
  76,246
Total liabilities, $m
  29,007
  29,675
  30,437
  31,293
  32,242
  33,283
  34,417
  35,644
  36,965
  38,384
  39,902
  41,521
  43,245
  45,078
  47,022
  49,083
  51,264
  53,571
  56,009
  58,582
  61,297
  64,161
  67,180
  70,360
  73,710
  77,236
  80,948
  84,855
  88,964
  93,287
Total equity, $m
  7,071
  7,234
  7,420
  7,629
  7,860
  8,114
  8,390
  8,689
  9,011
  9,357
  9,727
  10,122
  10,542
  10,989
  11,463
  11,966
  12,497
  13,060
  13,654
  14,281
  14,943
  15,641
  16,377
  17,152
  17,969
  18,829
  19,734
  20,686
  21,688
  22,742
Total liabilities and equity, $m
  36,078
  36,909
  37,857
  38,922
  40,102
  41,397
  42,807
  44,333
  45,976
  47,741
  49,629
  51,643
  53,787
  56,067
  58,485
  61,049
  63,761
  66,631
  69,663
  72,863
  76,240
  79,802
  83,557
  87,512
  91,679
  96,065
  100,682
  105,541
  110,652
  116,029
Debt-to-equity ratio
  1.690
  1.750
  1.810
  1.870
  1.930
  2.000
  2.070
  2.140
  2.210
  2.280
  2.350
  2.420
  2.490
  2.550
  2.620
  2.680
  2.740
  2.800
  2.850
  2.910
  2.960
  3.010
  3.060
  3.110
  3.150
  3.200
  3.240
  3.280
  3.320
  3.350
Adjusted equity ratio
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,087
  1,119
  1,179
  1,267
  1,381
  1,523
  1,692
  1,888
  2,111
  2,363
  2,962
  3,272
  3,613
  3,985
  4,390
  4,830
  5,305
  5,817
  6,367
  6,959
  7,592
  8,271
  8,995
  9,769
  10,594
  11,472
  12,407
  13,401
  14,458
  15,580
Depreciation, amort., depletion, $m
  1,833
  1,865
  1,902
  1,943
  1,989
  2,039
  2,094
  2,153
  2,217
  2,285
  1,922
  2,000
  2,083
  2,171
  2,265
  2,364
  2,469
  2,580
  2,697
  2,821
  2,952
  3,090
  3,235
  3,388
  3,550
  3,720
  3,898
  4,087
  4,284
  4,493
Funds from operations, $m
  2,921
  2,984
  3,081
  3,210
  3,370
  3,562
  3,786
  4,041
  4,328
  4,648
  4,883
  5,271
  5,695
  6,156
  6,655
  7,193
  7,773
  8,397
  9,065
  9,780
  10,544
  11,361
  12,231
  13,157
  14,143
  15,192
  16,306
  17,488
  18,743
  20,073
Change in working capital, $m
  59
  69
  79
  88
  98
  107
  117
  126
  136
  146
  156
  167
  178
  189
  200
  212
  225
  237
  251
  265
  280
  295
  311
  327
  345
  363
  382
  402
  423
  445
Cash from operations, $m
  2,862
  2,916
  3,003
  3,122
  3,273
  3,455
  3,669
  3,914
  4,192
  4,502
  4,727
  5,105
  5,518
  5,967
  6,455
  6,981
  7,549
  8,159
  8,814
  9,515
  10,265
  11,066
  11,920
  12,830
  13,799
  14,829
  15,923
  17,086
  18,319
  19,628
Maintenance CAPEX, $m
  -1,368
  -1,397
  -1,429
  -1,466
  -1,507
  -1,553
  -1,603
  -1,657
  -1,717
  -1,780
  -1,849
  -1,922
  -2,000
  -2,083
  -2,171
  -2,265
  -2,364
  -2,469
  -2,580
  -2,697
  -2,821
  -2,952
  -3,090
  -3,235
  -3,388
  -3,550
  -3,720
  -3,898
  -4,087
  -4,284
New CAPEX, $m
  -428
  -482
  -551
  -619
  -685
  -752
  -819
  -886
  -955
  -1,025
  -1,096
  -1,170
  -1,246
  -1,324
  -1,405
  -1,489
  -1,576
  -1,666
  -1,761
  -1,859
  -1,962
  -2,069
  -2,181
  -2,297
  -2,420
  -2,548
  -2,682
  -2,822
  -2,969
  -3,122
Cash from investing activities, $m
  -1,796
  -1,879
  -1,980
  -2,085
  -2,192
  -2,305
  -2,422
  -2,543
  -2,672
  -2,805
  -2,945
  -3,092
  -3,246
  -3,407
  -3,576
  -3,754
  -3,940
  -4,135
  -4,341
  -4,556
  -4,783
  -5,021
  -5,271
  -5,532
  -5,808
  -6,098
  -6,402
  -6,720
  -7,056
  -7,406
Free cash flow, $m
  1,066
  1,037
  1,023
  1,038
  1,080
  1,150
  1,247
  1,370
  1,520
  1,697
  1,782
  2,013
  2,272
  2,561
  2,879
  3,228
  3,609
  4,024
  4,473
  4,959
  5,482
  6,045
  6,649
  7,297
  7,990
  8,731
  9,522
  10,366
  11,264
  12,221
Issuance/(repayment) of debt, $m
  581
  667
  763
  856
  949
  1,041
  1,134
  1,227
  1,322
  1,419
  1,518
  1,619
  1,724
  1,833
  1,945
  2,061
  2,181
  2,307
  2,437
  2,573
  2,715
  2,864
  3,019
  3,180
  3,350
  3,527
  3,712
  3,906
  4,110
  4,322
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  
  581
  667
  763
  856
  949
  1,041
  1,134
  1,227
  1,322
  1,419
  1,518
  1,619
  1,724
  1,833
  1,945
  2,061
  2,181
  2,307
  2,437
  2,573
  2,715
  2,864
  3,019
  3,180
  3,350
  3,527
  3,712
  3,906
  4,110
  4,322
Total cash flow (excl. dividends), $m
  1,647
  1,704
  1,785
  1,894
  2,029
  2,191
  2,381
  2,597
  2,842
  3,115
  3,300
  3,633
  3,997
  4,393
  4,823
  5,289
  5,791
  6,331
  6,910
  7,532
  8,198
  8,909
  9,668
  10,478
  11,340
  12,258
  13,234
  14,272
  15,374
  16,543
Retained Cash Flow (-), $m
  -122
  -163
  -186
  -209
  -231
  -254
  -276
  -299
  -322
  -346
  -370
  -395
  -420
  -447
  -474
  -502
  -532
  -562
  -594
  -627
  -662
  -698
  -736
  -775
  -817
  -860
  -905
  -952
  -1,002
  -1,054
Prev. year cash balance distribution, $m
  815
  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
  2,340
  1,541
  1,599
  1,685
  1,798
  1,938
  2,104
  2,298
  2,520
  2,769
  2,930
  3,238
  3,576
  3,947
  4,349
  4,786
  5,259
  5,768
  6,316
  6,905
  7,536
  8,211
  8,932
  9,702
  10,523
  11,398
  12,329
  13,320
  14,372
  15,490
Discount rate, %
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.12
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.82
  25.01
  26.26
  27.58
PV of cash for distribution, $m
  2,193
  1,345
  1,291
  1,250
  1,215
  1,184
  1,153
  1,118
  1,077
  1,030
  938
  881
  817
  746
  671
  594
  517
  441
  369
  302
  243
  190
  146
  109
  79
  56
  38
  26
  17
  10
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

George Weston Limited is a holding company engaged in food processing and distribution business. The Company, through its two operating segments, Weston Foods and Loblaw, holds cash, short-term investments and a direct investment in Choice Properties Real Estate Investment Trust (Choice Properties). The Weston Foods operating segment includes a fresh bakery business in Canada, and frozen, artisan style bakery and biscuit businesses throughout North America. The Loblaw segment, which is operated by Loblaw Companies Limited, is a food and pharmacy retailer, and the majority unitholder of Choice Properties. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, retail banking, credit card services, insurance and wireless mobile products and services. Choice Properties owns, develops and manages income-producing retail and commercial properties.

FINANCIAL RATIOS  of  George Weston Limited (WN)

Valuation Ratios
P/E Ratio 24.6
Price to Sales 0.3
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 3.6
Price to Free Cash Flow 5.9
Growth Rates
Sales Growth Rate 2.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -2.3%
Cap. Spend. - 3 Yr. Gr. Rate 8.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 146.6%
Total Debt to Equity 169.3%
Interest Coverage 4
Management Effectiveness
Return On Assets 2.5%
Ret/ On Assets - 3 Yr. Avg. 2.3%
Return On Total Capital 2.6%
Ret/ On T. Cap. - 3 Yr. Avg. 1.9%
Return On Equity 7.1%
Return On Equity - 3 Yr. Avg. 5.3%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 28.9%
Gross Margin - 3 Yr. Avg. 27.4%
EBITDA Margin 7.9%
EBITDA Margin - 3 Yr. Avg. 6.9%
Operating Margin 4.7%
Oper. Margin - 3 Yr. Avg. 3.7%
Pre-Tax Margin 3.2%
Pre-Tax Margin - 3 Yr. Avg. 2.1%
Net Profit Margin 1.1%
Net Profit Margin - 3 Yr. Avg. 0.8%
Effective Tax Rate 29.9%
Eff/ Tax Rate - 3 Yr. Avg. 26.2%
Payout Ratio 48.2%

WN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WN stock intrinsic value calculation we used $47999 million for the last fiscal year's total revenue generated by George Weston Limited. The default revenue input number comes from 2016 income statement of George Weston 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 WN 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 6.7%, whose default value for WN is calculated based on our internal credit rating of George Weston 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 George Weston 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 WN stock the variable cost ratio is equal to 70.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $12204 million in the base year in the intrinsic value calculation for WN 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 4.3% for George Weston Limited.

Corporate tax rate of 27% is the nominal tax rate for George Weston 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 WN 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 WN are equal to 42.8%.

Life of production assets of 15 years is the average useful life of capital assets used in George Weston 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 WN is equal to 6.1%. 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 - $7764 million for George Weston 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 127.886 million for George Weston 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 George Weston Limited at the current share price and the inputted number of shares is $13.5 billion.

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