Intrinsic value of Cott Corporation - BCB

Previous Close

$19.10

  Intrinsic Value

$28.82

stock screener

  Rating & Target

str. buy

+51%

  Value-price divergence*

+86%

Previous close

$19.10

 
Intrinsic value

$28.82

 
Up/down potential

+51%

 
Rating

str. buy

 
Value-price divergence*

+86%

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

We calculate the intrinsic value of BCB 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 2.7

 

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, %
  9.90
  28.30
  25.97
  23.87
  21.99
  20.29
  18.76
  17.38
  16.14
  15.03
  14.03
  13.12
  12.31
  11.58
  10.92
  10.33
  9.80
  9.32
  8.89
  8.50
  8.15
  7.83
  7.55
  7.29
  7.07
  6.86
  6.67
  6.51
  6.35
  6.22
  6.10
Revenue, $m
  4,372
  5,609
  7,066
  8,753
  10,677
  12,843
  15,253
  17,904
  20,794
  23,920
  27,275
  30,854
  34,653
  38,666
  42,890
  47,320
  51,956
  56,797
  61,844
  67,099
  72,566
  78,250
  84,158
  90,296
  96,676
  103,307
  110,200
  117,369
  124,828
  132,591
  140,676
Variable operating expenses, $m
 
  5,374
  6,728
  8,296
  10,085
  12,099
  14,339
  16,804
  19,491
  22,396
  25,516
  28,685
  32,216
  35,947
  39,874
  43,993
  48,303
  52,803
  57,495
  62,381
  67,463
  72,747
  78,239
  83,947
  89,878
  96,042
  102,450
  109,115
  116,049
  123,267
  130,783
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
  4,261
  5,374
  6,728
  8,296
  10,085
  12,099
  14,339
  16,804
  19,491
  22,396
  25,516
  28,685
  32,216
  35,947
  39,874
  43,993
  48,303
  52,803
  57,495
  62,381
  67,463
  72,747
  78,239
  83,947
  89,878
  96,042
  102,450
  109,115
  116,049
  123,267
  130,783
Operating income, $m
  111
  236
  338
  457
  592
  744
  914
  1,100
  1,303
  1,523
  1,759
  2,170
  2,437
  2,719
  3,016
  3,328
  3,654
  3,994
  4,349
  4,719
  5,103
  5,503
  5,918
  6,350
  6,798
  7,265
  7,749
  8,254
  8,778
  9,324
  9,893
EBITDA, $m
  434
  657
  827
  1,025
  1,250
  1,503
  1,785
  2,096
  2,434
  2,800
  3,193
  3,611
  4,056
  4,526
  5,020
  5,539
  6,081
  6,648
  7,239
  7,854
  8,494
  9,159
  9,851
  10,569
  11,316
  12,092
  12,899
  13,738
  14,611
  15,520
  16,466
Interest expense (income), $m
  169
  183
  256
  343
  443
  557
  685
  828
  986
  1,157
  1,342
  1,541
  1,754
  1,979
  2,217
  2,468
  2,731
  3,006
  3,293
  3,592
  3,904
  4,228
  4,565
  4,916
  5,280
  5,658
  6,052
  6,461
  6,886
  7,328
  7,789
Earnings before tax, $m
  -62
  53
  82
  114
  149
  187
  228
  272
  318
  366
  417
  628
  683
  740
  799
  860
  923
  989
  1,056
  1,126
  1,199
  1,275
  1,353
  1,434
  1,518
  1,606
  1,698
  1,793
  1,892
  1,996
  2,104
Tax expense, $m
  35
  14
  22
  31
  40
  51
  62
  73
  86
  99
  113
  170
  184
  200
  216
  232
  249
  267
  285
  304
  324
  344
  365
  387
  410
  434
  458
  484
  511
  539
  568
Net income, $m
  -105
  39
  60
  83
  109
  137
  167
  199
  232
  267
  304
  459
  499
  540
  583
  628
  674
  722
  771
  822
  875
  930
  988
  1,047
  1,108
  1,173
  1,239
  1,309
  1,381
  1,457
  1,536

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  160
  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
  5,323
  6,623
  8,342
  10,334
  12,606
  15,163
  18,008
  21,138
  24,551
  28,240
  32,202
  36,428
  40,913
  45,651
  50,637
  55,868
  61,342
  67,057
  73,016
  79,220
  85,674
  92,385
  99,360
  106,607
  114,139
  121,968
  130,106
  138,570
  147,376
  156,542
  166,087
Adjusted assets (=assets-cash), $m
  5,163
  6,623
  8,342
  10,334
  12,606
  15,163
  18,008
  21,138
  24,551
  28,240
  32,202
  36,428
  40,913
  45,651
  50,637
  55,868
  61,342
  67,057
  73,016
  79,220
  85,674
  92,385
  99,360
  106,607
  114,139
  121,968
  130,106
  138,570
  147,376
  156,542
  166,087
Revenue / Adjusted assets
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
Average production assets, $m
  2,246
  2,883
  3,632
  4,499
  5,488
  6,601
  7,840
  9,203
  10,688
  12,295
  14,019
  15,859
  17,812
  19,874
  22,045
  24,323
  26,706
  29,194
  31,788
  34,489
  37,299
  40,221
  43,257
  46,412
  49,691
  53,100
  56,643
  60,328
  64,161
  68,152
  72,307
Working capital, $m
  58
  241
  304
  376
  459
  552
  656
  770
  894
  1,029
  1,173
  1,327
  1,490
  1,663
  1,844
  2,035
  2,234
  2,442
  2,659
  2,885
  3,120
  3,365
  3,619
  3,883
  4,157
  4,442
  4,739
  5,047
  5,368
  5,701
  6,049
Total debt, $m
  2,973
  3,942
  5,272
  6,811
  8,567
  10,544
  12,743
  15,163
  17,801
  20,653
  23,715
  26,982
  30,449
  34,111
  37,965
  42,009
  46,240
  50,658
  55,264
  60,060
  65,049
  70,237
  75,628
  81,231
  87,053
  93,104
  99,395
  105,938
  112,745
  119,830
  127,208
Total liabilities, $m
  4,149
  5,119
  6,449
  7,988
  9,744
  11,721
  13,920
  16,340
  18,978
  21,830
  24,892
  28,159
  31,626
  35,288
  39,142
  43,186
  47,417
  51,835
  56,441
  61,237
  66,226
  71,414
  76,805
  82,408
  88,230
  94,281
  100,572
  107,115
  113,922
  121,007
  128,385
Total equity, $m
  1,173
  1,503
  1,894
  2,346
  2,862
  3,442
  4,088
  4,798
  5,573
  6,411
  7,310
  8,269
  9,287
  10,363
  11,495
  12,682
  13,925
  15,222
  16,575
  17,983
  19,448
  20,971
  22,555
  24,200
  25,910
  27,687
  29,534
  31,455
  33,454
  35,535
  37,702
Total liabilities and equity, $m
  5,322
  6,622
  8,343
  10,334
  12,606
  15,163
  18,008
  21,138
  24,551
  28,241
  32,202
  36,428
  40,913
  45,651
  50,637
  55,868
  61,342
  67,057
  73,016
  79,220
  85,674
  92,385
  99,360
  106,608
  114,140
  121,968
  130,106
  138,570
  147,376
  156,542
  166,087
Debt-to-equity ratio
  2.535
  2.620
  2.780
  2.900
  2.990
  3.060
  3.120
  3.160
  3.190
  3.220
  3.240
  3.260
  3.280
  3.290
  3.300
  3.310
  3.320
  3.330
  3.330
  3.340
  3.340
  3.350
  3.350
  3.360
  3.360
  3.360
  3.370
  3.370
  3.370
  3.370
  3.370
Adjusted equity ratio
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -105
  39
  60
  83
  109
  137
  167
  199
  232
  267
  304
  459
  499
  540
  583
  628
  674
  722
  771
  822
  875
  930
  988
  1,047
  1,108
  1,173
  1,239
  1,309
  1,381
  1,457
  1,536
Depreciation, amort., depletion, $m
  323
  421
  489
  568
  658
  759
  872
  995
  1,130
  1,277
  1,433
  1,442
  1,619
  1,807
  2,004
  2,211
  2,428
  2,654
  2,890
  3,135
  3,391
  3,656
  3,932
  4,219
  4,517
  4,827
  5,149
  5,484
  5,833
  6,196
  6,573
Funds from operations, $m
  429
  459
  549
  651
  767
  896
  1,038
  1,194
  1,363
  1,544
  1,738
  1,900
  2,118
  2,347
  2,587
  2,839
  3,102
  3,376
  3,661
  3,958
  4,266
  4,587
  4,920
  5,266
  5,626
  6,000
  6,389
  6,793
  7,214
  7,652
  8,109
Change in working capital, $m
  64
  53
  63
  73
  83
  93
  104
  114
  124
  134
  144
  154
  163
  173
  182
  191
  199
  208
  217
  226
  235
  244
  254
  264
  274
  285
  296
  308
  321
  334
  348
Cash from operations, $m
  365
  406
  486
  579
  684
  803
  935
  1,080
  1,238
  1,409
  1,593
  1,746
  1,955
  2,174
  2,406
  2,648
  2,902
  3,167
  3,444
  3,732
  4,031
  4,342
  4,666
  5,002
  5,352
  5,715
  6,092
  6,485
  6,893
  7,319
  7,761
Maintenance CAPEX, $m
  0
  -204
  -262
  -330
  -409
  -499
  -600
  -713
  -837
  -972
  -1,118
  -1,274
  -1,442
  -1,619
  -1,807
  -2,004
  -2,211
  -2,428
  -2,654
  -2,890
  -3,135
  -3,391
  -3,656
  -3,932
  -4,219
  -4,517
  -4,827
  -5,149
  -5,484
  -5,833
  -6,196
New CAPEX, $m
  -200
  -638
  -749
  -867
  -989
  -1,113
  -1,238
  -1,363
  -1,486
  -1,606
  -1,725
  -1,840
  -1,953
  -2,063
  -2,171
  -2,277
  -2,383
  -2,488
  -2,594
  -2,701
  -2,810
  -2,922
  -3,036
  -3,155
  -3,279
  -3,408
  -3,543
  -3,685
  -3,834
  -3,990
  -4,156
Cash from investing activities, $m
  -1,482
  -842
  -1,011
  -1,197
  -1,398
  -1,612
  -1,838
  -2,076
  -2,323
  -2,578
  -2,843
  -3,114
  -3,395
  -3,682
  -3,978
  -4,281
  -4,594
  -4,916
  -5,248
  -5,591
  -5,945
  -6,313
  -6,692
  -7,087
  -7,498
  -7,925
  -8,370
  -8,834
  -9,318
  -9,823
  -10,352
Free cash flow, $m
  -1,117
  -436
  -525
  -619
  -714
  -810
  -904
  -996
  -1,084
  -1,169
  -1,249
  -1,368
  -1,440
  -1,508
  -1,572
  -1,633
  -1,692
  -1,749
  -1,804
  -1,859
  -1,914
  -1,970
  -2,027
  -2,086
  -2,147
  -2,211
  -2,278
  -2,349
  -2,425
  -2,505
  -2,590
Issuance/(repayment) of debt, $m
  781
  1,129
  1,329
  1,539
  1,756
  1,977
  2,199
  2,420
  2,638
  2,852
  3,062
  3,267
  3,467
  3,662
  3,854
  4,044
  4,231
  4,418
  4,606
  4,796
  4,989
  5,187
  5,391
  5,603
  5,822
  6,051
  6,291
  6,543
  6,807
  7,085
  7,378
Issuance/(repurchase) of shares, $m
  488
  292
  331
  369
  407
  444
  479
  512
  543
  570
  595
  501
  519
  535
  549
  560
  569
  576
  582
  586
  590
  593
  596
  598
  601
  604
  608
  612
  618
  624
  631
Cash from financing (excl. dividends), $m  
  1,225
  1,421
  1,660
  1,908
  2,163
  2,421
  2,678
  2,932
  3,181
  3,422
  3,657
  3,768
  3,986
  4,197
  4,403
  4,604
  4,800
  4,994
  5,188
  5,382
  5,579
  5,780
  5,987
  6,201
  6,423
  6,655
  6,899
  7,155
  7,425
  7,709
  8,009
Total cash flow (excl. dividends), $m
  97
  985
  1,135
  1,290
  1,449
  1,611
  1,774
  1,936
  2,096
  2,254
  2,408
  2,400
  2,547
  2,690
  2,831
  2,970
  3,108
  3,245
  3,383
  3,523
  3,665
  3,810
  3,960
  4,115
  4,277
  4,445
  4,621
  4,806
  5,000
  5,204
  5,420
Retained Cash Flow (-), $m
  -309
  -330
  -390
  -452
  -516
  -581
  -646
  -711
  -775
  -838
  -899
  -959
  -1,018
  -1,076
  -1,132
  -1,187
  -1,242
  -1,297
  -1,353
  -1,408
  -1,465
  -1,523
  -1,583
  -1,645
  -1,710
  -1,777
  -1,847
  -1,921
  -1,999
  -2,081
  -2,167
Prev. year cash balance distribution, $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 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
 
  655
  745
  838
  933
  1,030
  1,128
  1,226
  1,322
  1,416
  1,509
  1,440
  1,528
  1,615
  1,699
  1,783
  1,865
  1,948
  2,031
  2,114
  2,200
  2,287
  2,377
  2,470
  2,567
  2,668
  2,774
  2,885
  3,001
  3,124
  3,253
Discount rate, %
 
  10.60
  11.13
  11.69
  12.27
  12.88
  13.53
  14.21
  14.92
  15.66
  16.44
  17.27
  18.13
  19.04
  19.99
  20.99
  22.04
  23.14
  24.30
  25.51
  26.79
  28.12
  29.53
  31.01
  32.56
  34.19
  35.90
  37.69
  39.57
  41.55
  43.63
PV of cash for distribution, $m
 
  592
  603
  601
  587
  562
  527
  484
  435
  382
  329
  250
  207
  168
  133
  102
  77
  57
  40
  28
  19
  13
  8
  5
  3
  2
  1
  1
  0
  0
  0
Current shareholders' claim on cash, %
  100
  90.1
  82.2
  75.7
  70.3
  65.8
  62.0
  58.8
  56.0
  53.6
  51.5
  49.9
  48.6
  47.4
  46.3
  45.3
  44.5
  43.7
  42.9
  42.3
  41.7
  41.1
  40.6
  40.2
  39.7
  39.3
  38.9
  38.6
  38.3
  37.9
  37.7

Cott Corporation, together with its subsidiaries, produces and sells beverages on behalf of retailers, brand owners, and distributors worldwide. Its product lines include carbonated soft drinks, juice and juice-based products, clear and flavored waters, energy drinks and shots, sports products, new age beverages, ready-to-drink teas and alcoholic beverages, beverage concentrates, liquid enhancers, and freezables, as well as hot chocolate, coffee, malt drinks, creamers/whiteners, and cereals. The company offers its products under various retailer brands, which include Cott and Red Rain brand in North America and the United Kingdom; Stars & Stripes, Vess, Vintage, So Clear, Shanstar, Harvest Classic, Chadwick Bay, Exact, Alhambra, Belmont Springs, Deep Rock, Hinckley Springs, Sparkletts, Crystal Springs, Kentwood Springs, Mount Olympus Standard Coffee, and Javarama brands in the United States; Emerge, Red Rooster, MacB, Carters, Calypso, Mr. Freeze, Jubbly, Suso, Cafe Nueva, and Ben Shaws brands in the United Kingdom; Stars & Stripes brand in Mexico; and RC brand name in approximately 120 countries and territories outside of North America. It also provides contract manufacturing services. The company’s customers include grocery, mass-merchandise, drugstore, wholesale, and convenience store chains. Cott Corporation was founded in 1955 and is based in Tampa, Florida.

FINANCIAL RATIOS  of  Cott Corporation (BCB)

Valuation Ratios
P/E Ratio -25.2
Price to Sales 0.6
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 7.3
Price to Free Cash Flow 16
Growth Rates
Sales Growth Rate 9.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 28.2%
Cap. Spend. - 3 Yr. Gr. Rate 19.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 228.9%
Total Debt to Equity 253.5%
Interest Coverage 1
Management Effectiveness
Return On Assets 3.5%
Ret/ On Assets - 3 Yr. Avg. -10.6%
Return On Total Capital -2.9%
Ret/ On T. Cap. - 3 Yr. Avg. -0.5%
Return On Equity -10.3%
Return On Equity - 3 Yr. Avg. -2.1%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 33.2%
Gross Margin - 3 Yr. Avg. 25.6%
EBITDA Margin 9.8%
EBITDA Margin - 3 Yr. Avg. 8.8%
Operating Margin 2.5%
Oper. Margin - 3 Yr. Avg. 2.2%
Pre-Tax Margin -1.4%
Pre-Tax Margin - 3 Yr. Avg. -1.2%
Net Profit Margin -2.4%
Net Profit Margin - 3 Yr. Avg. -0.5%
Effective Tax Rate -56.5%
Eff/ Tax Rate - 3 Yr. Avg. 371%
Payout Ratio -40%

BCB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BCB stock intrinsic value calculation we used $4372 million for the last fiscal year's total revenue generated by Cott Corporation. The default revenue input number comes from 2016 income statement of Cott Corporation. 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 BCB stock valuation model: a) initial revenue growth rate of 28.3% 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 10.6%, whose default value for BCB is calculated based on our internal credit rating of Cott Corporation, 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 Cott Corporation.
    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 BCB stock the variable cost ratio is equal to 96.6%.

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 BCB 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 6.5% for Cott Corporation.

Corporate tax rate of 27% is the nominal tax rate for Cott Corporation. 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 BCB 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 BCB are equal to 51.4%.

Life of production assets of 11 years is the average useful life of capital assets used in Cott Corporation 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 BCB is equal to 4.3%. 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 - $1173 million for Cott Corporation - 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 139.394 million for Cott Corporation 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 Cott Corporation at the current share price and the inputted number of shares is $2.7 billion.

RELATED COMPANIES Price Int.Val. Rating
SAP Saputo Inc. 42.75 23.33  sell
Stock chart of BCB Financial statements of BCB
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2017. All rigths reserved.