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

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$51.42

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$51.42

 
Intrinsic value

$68.41

 
Up/down potential

+33%

 
Rating

buy

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

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 5.9

 

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
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.15
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
Revenue, $m
  4,045
  4,263
  4,492
  4,731
  4,981
  5,244
  5,518
  5,806
  6,107
  6,423
  6,754
  7,101
  7,465
  7,847
  8,247
  8,667
  9,108
  9,570
  10,055
  10,564
  11,097
  11,658
  12,246
  12,863
  13,510
  14,190
  14,904
  15,653
  16,439
  17,265
  18,131
Variable operating expenses, $m
 
  3,393
  3,575
  3,765
  3,964
  4,172
  4,390
  4,618
  4,858
  5,109
  5,372
  5,640
  5,929
  6,232
  6,550
  6,884
  7,234
  7,601
  7,986
  8,390
  8,814
  9,259
  9,726
  10,216
  10,731
  11,271
  11,837
  12,432
  13,057
  13,712
  14,401
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
  3,393
  3,575
  3,765
  3,964
  4,172
  4,390
  4,618
  4,858
  5,109
  5,372
  5,640
  5,929
  6,232
  6,550
  6,884
  7,234
  7,601
  7,986
  8,390
  8,814
  9,259
  9,726
  10,216
  10,731
  11,271
  11,837
  12,432
  13,057
  13,712
  14,401
Operating income, $m
  1,313
  870
  917
  966
  1,018
  1,072
  1,128
  1,187
  1,249
  1,314
  1,383
  1,461
  1,536
  1,615
  1,697
  1,783
  1,874
  1,969
  2,069
  2,173
  2,283
  2,399
  2,520
  2,647
  2,780
  2,920
  3,067
  3,221
  3,382
  3,552
  3,731
EBITDA, $m
  1,928
  1,482
  1,561
  1,644
  1,731
  1,822
  1,918
  2,018
  2,123
  2,232
  2,347
  2,468
  2,595
  2,727
  2,866
  3,012
  3,165
  3,326
  3,495
  3,671
  3,857
  4,052
  4,256
  4,471
  4,696
  4,932
  5,180
  5,440
  5,714
  6,000
  6,302
Interest expense (income), $m
  394
  391
  431
  474
  519
  566
  616
  668
  722
  779
  838
  901
  967
  1,035
  1,107
  1,183
  1,262
  1,345
  1,433
  1,524
  1,620
  1,721
  1,827
  1,938
  2,054
  2,177
  2,305
  2,440
  2,581
  2,730
  2,886
Earnings before tax, $m
  933
  479
  486
  493
  499
  506
  513
  520
  528
  536
  544
  560
  569
  579
  590
  600
  612
  624
  636
  649
  663
  678
  693
  709
  725
  743
  761
  781
  801
  822
  845
Tax expense, $m
  258
  129
  131
  133
  135
  136
  138
  140
  142
  145
  147
  151
  154
  156
  159
  162
  165
  168
  172
  175
  179
  183
  187
  191
  196
  201
  206
  211
  216
  222
  228
Net income, $m
  340
  350
  355
  360
  364
  369
  374
  380
  385
  391
  397
  409
  416
  423
  430
  438
  447
  455
  464
  474
  484
  495
  506
  517
  530
  542
  556
  570
  585
  600
  617

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
  20,111
  21,188
  22,317
  23,497
  24,734
  26,029
  27,386
  28,808
  30,298
  31,859
  33,497
  35,214
  37,014
  38,902
  40,883
  42,961
  45,141
  47,428
  49,828
  52,346
  54,989
  57,763
  60,673
  63,729
  66,935
  70,301
  73,835
  77,543
  81,437
  85,524
Adjusted assets (=assets-cash), $m
  19,118
  20,111
  21,188
  22,317
  23,497
  24,734
  26,029
  27,386
  28,808
  30,298
  31,859
  33,497
  35,214
  37,014
  38,902
  40,883
  42,961
  45,141
  47,428
  49,828
  52,346
  54,989
  57,763
  60,673
  63,729
  66,935
  70,301
  73,835
  77,543
  81,437
  85,524
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
  3,023
  3,185
  3,354
  3,532
  3,718
  3,912
  4,116
  4,330
  4,554
  4,789
  5,035
  5,293
  5,564
  5,847
  6,145
  6,457
  6,785
  7,129
  7,490
  7,868
  8,265
  8,682
  9,120
  9,579
  10,061
  10,567
  11,098
  11,655
  12,241
  12,855
Working capital, $m
  395
  17
  18
  19
  20
  21
  22
  23
  24
  26
  27
  28
  30
  31
  33
  35
  36
  38
  40
  42
  44
  47
  49
  51
  54
  57
  60
  63
  66
  69
  73
Total debt, $m
  8,378
  8,972
  9,871
  10,812
  11,797
  12,828
  13,908
  15,040
  16,225
  17,468
  18,771
  20,136
  21,568
  23,070
  24,645
  26,297
  28,029
  29,847
  31,755
  33,756
  35,857
  38,061
  40,374
  42,802
  45,350
  48,024
  50,831
  53,778
  56,871
  60,118
  63,527
Total liabilities, $m
  16,178
  16,772
  17,671
  18,612
  19,597
  20,628
  21,708
  22,840
  24,025
  25,268
  26,571
  27,936
  29,368
  30,870
  32,445
  34,097
  35,829
  37,647
  39,555
  41,556
  43,657
  45,861
  48,174
  50,602
  53,150
  55,824
  58,631
  61,578
  64,671
  67,918
  71,327
Total equity, $m
  3,546
  3,338
  3,517
  3,705
  3,901
  4,106
  4,321
  4,546
  4,782
  5,029
  5,289
  5,560
  5,845
  6,144
  6,458
  6,787
  7,132
  7,493
  7,873
  8,271
  8,689
  9,128
  9,589
  10,072
  10,579
  11,111
  11,670
  12,257
  12,872
  13,519
  14,197
Total liabilities and equity, $m
  19,724
  20,110
  21,188
  22,317
  23,498
  24,734
  26,029
  27,386
  28,807
  30,297
  31,860
  33,496
  35,213
  37,014
  38,903
  40,884
  42,961
  45,140
  47,428
  49,827
  52,346
  54,989
  57,763
  60,674
  63,729
  66,935
  70,301
  73,835
  77,543
  81,437
  85,524
Debt-to-equity ratio
  2.363
  2.690
  2.810
  2.920
  3.020
  3.120
  3.220
  3.310
  3.390
  3.470
  3.550
  3.620
  3.690
  3.750
  3.820
  3.870
  3.930
  3.980
  4.030
  4.080
  4.130
  4.170
  4.210
  4.250
  4.290
  4.320
  4.360
  4.390
  4.420
  4.450
  4.470
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
  350
  355
  360
  364
  369
  374
  380
  385
  391
  397
  409
  416
  423
  430
  438
  447
  455
  464
  474
  484
  495
  506
  517
  530
  542
  556
  570
  585
  600
  617
Depreciation, amort., depletion, $m
  615
  612
  644
  678
  713
  751
  790
  830
  873
  918
  965
  1,007
  1,059
  1,113
  1,169
  1,229
  1,291
  1,357
  1,426
  1,498
  1,574
  1,653
  1,736
  1,824
  1,916
  2,012
  2,113
  2,220
  2,331
  2,448
  2,571
Funds from operations, $m
  1,605
  961
  999
  1,038
  1,078
  1,120
  1,164
  1,210
  1,258
  1,309
  1,362
  1,416
  1,474
  1,536
  1,600
  1,667
  1,738
  1,812
  1,890
  1,972
  2,058
  2,148
  2,242
  2,341
  2,445
  2,555
  2,669
  2,790
  2,916
  3,049
  3,188
Change in working capital, $m
  -185
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
  3
  3
  3
  3
  3
  3
  3
Cash from operations, $m
  1,790
  1,044
  998
  1,037
  1,077
  1,119
  1,163
  1,209
  1,257
  1,308
  1,361
  1,414
  1,473
  1,534
  1,598
  1,666
  1,736
  1,810
  1,888
  1,970
  2,055
  2,145
  2,240
  2,339
  2,443
  2,552
  2,666
  2,787
  2,913
  3,045
  3,184
Maintenance CAPEX, $m
  0
  -574
  -605
  -637
  -671
  -706
  -744
  -782
  -823
  -866
  -911
  -958
  -1,007
  -1,059
  -1,113
  -1,169
  -1,229
  -1,291
  -1,357
  -1,426
  -1,498
  -1,574
  -1,653
  -1,736
  -1,824
  -1,916
  -2,012
  -2,113
  -2,220
  -2,331
  -2,448
New CAPEX, $m
  -1,433
  -154
  -162
  -170
  -177
  -186
  -195
  -204
  -214
  -224
  -235
  -246
  -258
  -271
  -284
  -298
  -312
  -328
  -344
  -361
  -379
  -397
  -417
  -438
  -459
  -482
  -506
  -531
  -557
  -585
  -614
Cash from investing activities, $m
  -1,611
  -728
  -767
  -807
  -848
  -892
  -939
  -986
  -1,037
  -1,090
  -1,146
  -1,204
  -1,265
  -1,330
  -1,397
  -1,467
  -1,541
  -1,619
  -1,701
  -1,787
  -1,877
  -1,971
  -2,070
  -2,174
  -2,283
  -2,398
  -2,518
  -2,644
  -2,777
  -2,916
  -3,062
Free cash flow, $m
  179
  316
  232
  230
  228
  226
  224
  222
  220
  218
  215
  211
  208
  205
  202
  198
  195
  191
  187
  183
  179
  175
  170
  165
  160
  154
  148
  142
  136
  129
  122
Issuance/(repayment) of debt, $m
  346
  823
  899
  941
  985
  1,031
  1,080
  1,132
  1,186
  1,243
  1,303
  1,366
  1,432
  1,502
  1,575
  1,652
  1,733
  1,818
  1,907
  2,001
  2,100
  2,204
  2,313
  2,428
  2,548
  2,674
  2,807
  2,947
  3,093
  3,247
  3,409
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
  0
Cash from financing (excl. dividends), $m  
  -236
  823
  899
  941
  985
  1,031
  1,080
  1,132
  1,186
  1,243
  1,303
  1,366
  1,432
  1,502
  1,575
  1,652
  1,733
  1,818
  1,907
  2,001
  2,100
  2,204
  2,313
  2,428
  2,548
  2,674
  2,807
  2,947
  3,093
  3,247
  3,409
Total cash flow (excl. dividends), $m
  -67
  1,139
  1,131
  1,171
  1,213
  1,258
  1,305
  1,354
  1,406
  1,460
  1,518
  1,576
  1,640
  1,706
  1,777
  1,850
  1,928
  2,009
  2,095
  2,185
  2,279
  2,379
  2,483
  2,592
  2,708
  2,828
  2,955
  3,089
  3,229
  3,376
  3,531
Retained Cash Flow (-), $m
  -190
  -169
  -179
  -187
  -196
  -205
  -215
  -225
  -236
  -247
  -259
  -272
  -285
  -299
  -313
  -329
  -345
  -362
  -380
  -398
  -418
  -439
  -460
  -483
  -507
  -532
  -559
  -587
  -616
  -646
  -678
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
 
  1,347
  952
  984
  1,017
  1,052
  1,090
  1,129
  1,170
  1,213
  1,258
  1,304
  1,355
  1,408
  1,463
  1,522
  1,583
  1,647
  1,715
  1,786
  1,861
  1,940
  2,023
  2,109
  2,200
  2,296
  2,397
  2,502
  2,613
  2,730
  2,852
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
 
  1,238
  798
  745
  690
  633
  575
  517
  460
  404
  350
  299
  252
  209
  171
  137
  108
  83
  63
  46
  34
  24
  16
  11
  7
  4
  3
  2
  1
  1
  0
Current shareholders' claim on cash, %
  100
  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

ATCO Ltd. engages in structures and logistics, electricity, and pipelines and liquids businesses worldwide. Its Structures and Logistics segment is involved in the design, manufacture, and installation of temporary and permanent modular buildings for office spaces, workforce housing, and other facilities; modular fleet hire and sale activities; and provision of equipment and building maintenance, remote fuel supply and distribution, remote airfield, remote waste management, remote water and wastewater treatment, and remote medical and fire response services, as well as telecommunications, and radar operations and maintenance services. This segment also offers lodge accommodations and related support services, including catering, housekeeping, retail, maintenance, and utility services; noise and air emissions control, and waste heat recovery systems for power generation, oil and gas, petrochemical, and other industrial sites; and pre-fabricated building solutions to aboriginal and other communities. The company’s Energy segment transmits and distributes electricity; and supplies electricity and cogeneration steam from natural gas, coal-fired, and hydroelectric generating plants. . Its Pipelines & Liquids segment engages in the regulated natural gas distribution; non-regulated natural gas transmission through pipelines; non-regulated gathering, storage, processing, and transmission of natural gas; extraction of natural gas liquids; storage of hydro carbons; and provision of industrial water services. The company’s Corporate and Other segment retails electricity and offers natural gas services. ATCO Ltd. was founded in 1947 and is headquartered in Calgary, Canada.

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

Valuation Ratios
P/E Ratio 17.3
Price to Sales 1.5
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 3.3
Price to Free Cash Flow 16.5
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 5.4% 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 115.168 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 $5.9 billion.


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