Intrinsic value of ATCO Ltd. Class I Non-voting Shares - ACO-X

Previous Close

$44.84

  Intrinsic Value

$152.54

stock screener

  Rating & Target

str. buy

+240%

Previous close

$44.84

 
Intrinsic value

$152.54

 
Up/down potential

+240%

 
Rating

str. buy

We calculate the intrinsic value of ACO-X 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 5.1

 

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, %
  -2.08
  15.60
  14.54
  13.59
  12.73
  11.95
  11.26
  10.63
  10.07
  9.56
  9.11
  8.70
  8.33
  7.99
  7.69
  7.42
  7.18
  6.96
  6.77
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
  5.85
  5.76
  5.68
  5.62
  5.55
  5.50
Revenue, $m
  4,045
  4,676
  5,356
  6,084
  6,858
  7,678
  8,542
  9,450
  10,402
  11,397
  12,435
  13,516
  14,641
  15,812
  17,028
  18,293
  19,607
  20,972
  22,391
  23,867
  25,402
  27,000
  28,663
  30,395
  32,201
  34,083
  36,047
  38,096
  40,235
  42,470
  44,806
Variable operating expenses, $m
 
  3,721
  4,261
  4,839
  5,454
  6,105
  6,792
  7,513
  8,269
  9,059
  9,883
  10,735
  11,629
  12,558
  13,525
  14,529
  15,572
  16,657
  17,784
  18,956
  20,176
  21,445
  22,765
  24,141
  25,575
  27,070
  28,630
  30,257
  31,957
  33,732
  35,587
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
  2,732
  3,721
  4,261
  4,839
  5,454
  6,105
  6,792
  7,513
  8,269
  9,059
  9,883
  10,735
  11,629
  12,558
  13,525
  14,529
  15,572
  16,657
  17,784
  18,956
  20,176
  21,445
  22,765
  24,141
  25,575
  27,070
  28,630
  30,257
  31,957
  33,732
  35,587
Operating income, $m
  1,313
  955
  1,095
  1,245
  1,404
  1,573
  1,750
  1,937
  2,133
  2,338
  2,551
  2,781
  3,013
  3,253
  3,504
  3,764
  4,034
  4,315
  4,607
  4,911
  5,227
  5,555
  5,898
  6,254
  6,625
  7,013
  7,417
  7,838
  8,279
  8,738
  9,219
EBITDA, $m
  1,928
  1,625
  1,861
  2,114
  2,383
  2,668
  2,969
  3,285
  3,615
  3,961
  4,322
  4,698
  5,089
  5,495
  5,918
  6,358
  6,814
  7,289
  7,782
  8,295
  8,829
  9,384
  9,962
  10,564
  11,192
  11,846
  12,528
  13,240
  13,984
  14,761
  15,573
Interest expense (income), $m
  394
  391
  509
  637
  774
  921
  1,075
  1,239
  1,410
  1,590
  1,778
  1,974
  2,178
  2,390
  2,611
  2,841
  3,080
  3,328
  3,586
  3,854
  4,132
  4,422
  4,724
  5,038
  5,365
  5,706
  6,062
  6,432
  6,819
  7,223
  7,645
Earnings before tax, $m
  933
  564
  586
  608
  630
  652
  675
  699
  723
  748
  774
  807
  835
  863
  892
  923
  954
  987
  1,021
  1,057
  1,094
  1,133
  1,174
  1,216
  1,260
  1,307
  1,355
  1,406
  1,459
  1,515
  1,574
Tax expense, $m
  258
  152
  158
  164
  170
  176
  182
  189
  195
  202
  209
  218
  225
  233
  241
  249
  258
  267
  276
  285
  295
  306
  317
  328
  340
  353
  366
  380
  394
  409
  425
Net income, $m
  340
  412
  428
  444
  460
  476
  493
  510
  528
  546
  565
  589
  609
  630
  651
  674
  697
  721
  746
  772
  799
  827
  857
  888
  920
  954
  989
  1,026
  1,065
  1,106
  1,149

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  606
  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
  19,724
  22,057
  25,264
  28,696
  32,348
  36,215
  40,293
  44,578
  49,066
  53,759
  58,654
  63,755
  69,063
  74,584
  80,323
  86,287
  92,484
  98,925
  105,620
  112,582
  119,823
  127,358
  135,203
  143,374
  151,890
  160,769
  170,031
  179,697
  189,789
  200,332
  211,348
Adjusted assets (=assets-cash), $m
  19,118
  22,057
  25,264
  28,696
  32,348
  36,215
  40,293
  44,578
  49,066
  53,759
  58,654
  63,755
  69,063
  74,584
  80,323
  86,287
  92,484
  98,925
  105,620
  112,582
  119,823
  127,358
  135,203
  143,374
  151,890
  160,769
  170,031
  179,697
  189,789
  200,332
  211,348
Revenue / Adjusted assets
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
Average production assets, $m
  2,869
  3,315
  3,797
  4,313
  4,862
  5,443
  6,056
  6,700
  7,375
  8,080
  8,816
  9,583
  10,381
  11,211
  12,073
  12,970
  13,901
  14,869
  15,876
  16,922
  18,010
  19,143
  20,322
  21,550
  22,830
  24,165
  25,557
  27,010
  28,527
  30,111
  31,767
Working capital, $m
  395
  19
  21
  24
  27
  31
  34
  38
  42
  46
  50
  54
  59
  63
  68
  73
  78
  84
  90
  95
  102
  108
  115
  122
  129
  136
  144
  152
  161
  170
  179
Total debt, $m
  8,378
  10,595
  13,270
  16,133
  19,179
  22,404
  25,804
  29,378
  33,121
  37,035
  41,118
  45,372
  49,799
  54,403
  59,189
  64,163
  69,332
  74,703
  80,287
  86,093
  92,132
  98,417
  104,959
  111,774
  118,876
  126,281
  134,006
  142,067
  150,484
  159,277
  168,465
Total liabilities, $m
  16,178
  18,395
  21,070
  23,933
  26,979
  30,204
  33,604
  37,178
  40,921
  44,835
  48,918
  53,172
  57,599
  62,203
  66,989
  71,963
  77,132
  82,503
  88,087
  93,893
  99,932
  106,217
  112,759
  119,574
  126,676
  134,081
  141,806
  149,867
  158,284
  167,077
  176,265
Total equity, $m
  3,546
  3,661
  4,194
  4,764
  5,370
  6,012
  6,689
  7,400
  8,145
  8,924
  9,737
  10,583
  11,465
  12,381
  13,334
  14,324
  15,352
  16,422
  17,533
  18,689
  19,891
  21,141
  22,444
  23,800
  25,214
  26,688
  28,225
  29,830
  31,505
  33,255
  35,084
Total liabilities and equity, $m
  19,724
  22,056
  25,264
  28,697
  32,349
  36,216
  40,293
  44,578
  49,066
  53,759
  58,655
  63,755
  69,064
  74,584
  80,323
  86,287
  92,484
  98,925
  105,620
  112,582
  119,823
  127,358
  135,203
  143,374
  151,890
  160,769
  170,031
  179,697
  189,789
  200,332
  211,349
Debt-to-equity ratio
  2.363
  2.890
  3.160
  3.390
  3.570
  3.730
  3.860
  3.970
  4.070
  4.150
  4.220
  4.290
  4.340
  4.390
  4.440
  4.480
  4.520
  4.550
  4.580
  4.610
  4.630
  4.660
  4.680
  4.700
  4.710
  4.730
  4.750
  4.760
  4.780
  4.790
  4.800
Adjusted equity ratio
  0.157
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166
  0.166

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  340
  412
  428
  444
  460
  476
  493
  510
  528
  546
  565
  589
  609
  630
  651
  674
  697
  721
  746
  772
  799
  827
  857
  888
  920
  954
  989
  1,026
  1,065
  1,106
  1,149
Depreciation, amort., depletion, $m
  615
  670
  767
  870
  980
  1,096
  1,218
  1,347
  1,482
  1,623
  1,770
  1,917
  2,076
  2,242
  2,415
  2,594
  2,780
  2,974
  3,175
  3,384
  3,602
  3,829
  4,064
  4,310
  4,566
  4,833
  5,111
  5,402
  5,705
  6,022
  6,353
Funds from operations, $m
  1,605
  1,082
  1,195
  1,313
  1,439
  1,572
  1,711
  1,857
  2,010
  2,169
  2,335
  2,506
  2,685
  2,872
  3,066
  3,268
  3,477
  3,694
  3,921
  4,156
  4,401
  4,656
  4,921
  5,198
  5,486
  5,787
  6,101
  6,428
  6,771
  7,128
  7,502
Change in working capital, $m
  -185
  3
  3
  3
  3
  3
  3
  4
  4
  4
  4
  4
  5
  5
  5
  5
  5
  5
  6
  6
  6
  6
  7
  7
  7
  8
  8
  8
  9
  9
  9
Cash from operations, $m
  1,790
  1,079
  1,192
  1,310
  1,436
  1,569
  1,708
  1,854
  2,006
  2,165
  2,331
  2,502
  2,681
  2,867
  3,061
  3,262
  3,472
  3,689
  3,915
  4,150
  4,395
  4,649
  4,914
  5,191
  5,479
  5,779
  6,093
  6,420
  6,762
  7,119
  7,493
Maintenance CAPEX, $m
  0
  -574
  -663
  -759
  -863
  -972
  -1,089
  -1,211
  -1,340
  -1,475
  -1,616
  -1,763
  -1,917
  -2,076
  -2,242
  -2,415
  -2,594
  -2,780
  -2,974
  -3,175
  -3,384
  -3,602
  -3,829
  -4,064
  -4,310
  -4,566
  -4,833
  -5,111
  -5,402
  -5,705
  -6,022
New CAPEX, $m
  -1,433
  -447
  -482
  -516
  -549
  -581
  -613
  -644
  -675
  -705
  -736
  -767
  -798
  -830
  -863
  -896
  -932
  -968
  -1,006
  -1,046
  -1,088
  -1,133
  -1,179
  -1,228
  -1,280
  -1,335
  -1,392
  -1,453
  -1,517
  -1,585
  -1,656
Cash from investing activities, $m
  -1,611
  -1,021
  -1,145
  -1,275
  -1,412
  -1,553
  -1,702
  -1,855
  -2,015
  -2,180
  -2,352
  -2,530
  -2,715
  -2,906
  -3,105
  -3,311
  -3,526
  -3,748
  -3,980
  -4,221
  -4,472
  -4,735
  -5,008
  -5,292
  -5,590
  -5,901
  -6,225
  -6,564
  -6,919
  -7,290
  -7,678
Free cash flow, $m
  179
  59
  47
  35
  24
  15
  6
  -2
  -9
  -15
  -21
  -28
  -33
  -39
  -44
  -49
  -54
  -59
  -65
  -71
  -78
  -85
  -93
  -102
  -111
  -121
  -132
  -144
  -157
  -170
  -185
Issuance/(repayment) of debt, $m
  346
  2,446
  2,675
  2,863
  3,046
  3,225
  3,401
  3,573
  3,744
  3,913
  4,083
  4,254
  4,427
  4,604
  4,786
  4,974
  5,169
  5,372
  5,584
  5,806
  6,039
  6,284
  6,543
  6,815
  7,102
  7,405
  7,724
  8,061
  8,417
  8,792
  9,188
Issuance/(repurchase) of shares, $m
  0
  81
  104
  126
  147
  166
  184
  201
  217
  233
  248
  257
  272
  286
  301
  316
  332
  349
  366
  384
  403
  424
  446
  469
  494
  520
  548
  578
  610
  644
  680
Cash from financing (excl. dividends), $m  
  -236
  2,527
  2,779
  2,989
  3,193
  3,391
  3,585
  3,774
  3,961
  4,146
  4,331
  4,511
  4,699
  4,890
  5,087
  5,290
  5,501
  5,721
  5,950
  6,190
  6,442
  6,708
  6,989
  7,284
  7,596
  7,925
  8,272
  8,639
  9,027
  9,436
  9,868
Total cash flow (excl. dividends), $m
  -67
  2,586
  2,826
  3,024
  3,217
  3,406
  3,591
  3,773
  3,952
  4,131
  4,310
  4,483
  4,666
  4,852
  5,044
  5,242
  5,447
  5,661
  5,884
  6,118
  6,364
  6,623
  6,895
  7,182
  7,484
  7,804
  8,140
  8,496
  8,870
  9,266
  9,683
Retained Cash Flow (-), $m
  -190
  -492
  -532
  -570
  -606
  -642
  -677
  -711
  -745
  -779
  -813
  -847
  -881
  -916
  -953
  -990
  -1,029
  -1,069
  -1,111
  -1,156
  -1,202
  -1,251
  -1,302
  -1,356
  -1,414
  -1,474
  -1,537
  -1,605
  -1,675
  -1,750
  -1,829
Prev. year cash balance distribution, $m
 
  377
  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
 
  2,470
  2,293
  2,454
  2,611
  2,764
  2,914
  3,062
  3,207
  3,352
  3,497
  3,636
  3,784
  3,936
  4,091
  4,252
  4,418
  4,592
  4,773
  4,963
  5,162
  5,372
  5,593
  5,825
  6,071
  6,330
  6,603
  6,891
  7,195
  7,516
  7,854
Discount rate, %
 
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.18
  22.24
  23.35
  24.52
  25.74
  27.03
  28.38
  29.80
  31.29
  32.85
  34.50
  36.22
PV of cash for distribution, $m
 
  2,271
  1,922
  1,859
  1,771
  1,663
  1,539
  1,403
  1,261
  1,116
  973
  833
  704
  584
  477
  382
  300
  232
  175
  129
  93
  66
  45
  30
  19
  12
  7
  4
  3
  1
  1
Current shareholders' claim on cash, %
  100
  98.3
  96.4
  94.4
  92.5
  90.5
  88.7
  86.9
  85.1
  83.5
  81.9
  80.5
  79.1
  77.7
  76.4
  75.2
  74.0
  72.9
  71.8
  70.7
  69.7
  68.7
  67.7
  66.7
  65.8
  64.9
  64.0
  63.1
  62.2
  61.3
  60.5

Atco Ltd is a Canada-based company, which offers infrastructure solutions to customers around the world. The Company's segments include Structures & Logistics, Electricity, Pipelines & Liquids and Corporate & Other. Its Structures & Logistics segment consists of ATCO Structures & Logistics, ATCO Frontec and ATCO Sustainable Communities. Its Electricity segment consists of the generation, distribution and transmission businesses of ATCO Electric, ATCO Power and ATCO Power Australia. Its Pipelines & Liquids segment consists of ATCO Gas, ATCO Pipelines, ATCO Gas Australia, ATCO Energy Solutions and ATCO Pipelines Mexico. These businesses offer natural gas transmission, distribution and infrastructure development, natural gas liquids storage and processing, and industrial water solutions throughout Alberta and Western Australia. Its Corporate & Other segment consists of the commercial real estate owned by the Company in Alberta, business development activities associated with ATCO Energy.

FINANCIAL RATIOS  of  ATCO Ltd. Class I Non-voting Shares (ACO-X)

Valuation Ratios
P/E Ratio 15.1
Price to Sales 1.3
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 2.9
Price to Free Cash Flow 14.4
Growth Rates
Sales Growth Rate -2.1%
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 -10.2%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 229.8%
Total Debt to Equity 236.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.2%
Ret/ On Assets - 3 Yr. Avg. 3.1%
Return On Total Capital 2.9%
Ret/ On T. Cap. - 3 Yr. Avg. 2.9%
Return On Equity 9.9%
Return On Equity - 3 Yr. Avg. 9.5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 48%
EBITDA Margin - 3 Yr. Avg. 43.7%
Operating Margin 32.5%
Oper. Margin - 3 Yr. Avg. 27.3%
Pre-Tax Margin 23.1%
Pre-Tax Margin - 3 Yr. Avg. 19.7%
Net Profit Margin 8.4%
Net Profit Margin - 3 Yr. Avg. 7.1%
Effective Tax Rate 27.7%
Eff/ Tax Rate - 3 Yr. Avg. 28.8%
Payout Ratio 38.5%

ACO-X stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ACO-X stock intrinsic value calculation we used $4045 million for the last fiscal year's total revenue generated by ATCO Ltd. Class I Non-voting Shares. The default revenue input number comes from 2016 income statement of ATCO Ltd. Class I Non-voting Shares. 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 ACO-X stock valuation model: a) initial revenue growth rate of 15.6% 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 8.8%, whose default value for ACO-X is calculated based on our internal credit rating of ATCO Ltd. Class I Non-voting Shares, 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 ATCO Ltd. Class I Non-voting Shares.
    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 ACO-X stock the variable cost ratio is equal to 79.6%.

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 ACO-X 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 4.8% for ATCO Ltd. Class I Non-voting Shares.

Corporate tax rate of 27% is the nominal tax rate for ATCO Ltd. Class I Non-voting Shares. 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 ACO-X 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 ACO-X are equal to 70.9%.

Life of production assets of 4.8 years is the average useful life of capital assets used in ATCO Ltd. Class I Non-voting Shares 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 ACO-X is equal to 0.4%. 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 - $3546 million for ATCO Ltd. Class I Non-voting Shares - 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 114.715 million for ATCO Ltd. Class I Non-voting Shares 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 ATCO Ltd. Class I Non-voting Shares at the current share price and the inputted number of shares is $5.1 billion.

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Financial statements of ACO-X
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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