Intrinsic value of Brookfield Renewable Partners L.P. - BEP-UN

Previous Close

$44.13

  Intrinsic Value

$73.92

stock screener

  Rating & Target

str. buy

+67%

  Value-price divergence*

0%

Previous close

$44.13

 
Intrinsic value

$73.92

 
Up/down potential

+67%

 
Rating

str. buy

 
Value-price divergence*

0%

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

We calculate the intrinsic value of BEP-UN 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 8.0

 

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, %
  50.59
  9.00
  8.60
  8.24
  7.92
  7.62
  7.36
  7.13
  6.91
  6.72
  6.55
  6.39
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
Revenue, $m
  3,313
  3,611
  3,922
  4,245
  4,581
  4,930
  5,293
  5,670
  6,062
  6,470
  6,894
  7,334
  7,793
  8,271
  8,768
  9,287
  9,828
  10,392
  10,981
  11,596
  12,239
  12,910
  13,612
  14,346
  15,115
  15,918
  16,760
  17,641
  18,565
  19,532
  20,545
Variable operating expenses, $m
 
  2,557
  2,766
  2,984
  3,211
  3,446
  3,691
  3,945
  4,210
  4,485
  4,770
  4,947
  5,256
  5,578
  5,914
  6,264
  6,628
  7,009
  7,406
  7,821
  8,254
  8,707
  9,181
  9,676
  10,194
  10,736
  11,304
  11,898
  12,521
  13,173
  13,857
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
  2,506
  2,557
  2,766
  2,984
  3,211
  3,446
  3,691
  3,945
  4,210
  4,485
  4,770
  4,947
  5,256
  5,578
  5,914
  6,264
  6,628
  7,009
  7,406
  7,821
  8,254
  8,707
  9,181
  9,676
  10,194
  10,736
  11,304
  11,898
  12,521
  13,173
  13,857
Operating income, $m
  807
  1,055
  1,156
  1,261
  1,370
  1,484
  1,602
  1,725
  1,853
  1,985
  2,123
  2,388
  2,537
  2,693
  2,855
  3,023
  3,200
  3,383
  3,575
  3,775
  3,984
  4,203
  4,431
  4,670
  4,921
  5,182
  5,456
  5,743
  6,044
  6,359
  6,688
EBITDA, $m
  1,862
  1,176
  1,277
  1,382
  1,491
  1,605
  1,723
  1,846
  1,974
  2,106
  2,244
  2,388
  2,537
  2,693
  2,855
  3,023
  3,200
  3,383
  3,575
  3,775
  3,984
  4,203
  4,431
  4,670
  4,921
  5,182
  5,456
  5,743
  6,044
  6,359
  6,688
Interest expense (income), $m
  794
  902
  1,091
  1,285
  1,487
  1,696
  1,915
  2,141
  2,377
  2,621
  2,876
  3,141
  3,416
  3,702
  4,001
  4,311
  4,635
  4,973
  5,325
  5,693
  6,077
  6,478
  6,897
  7,336
  7,794
  8,274
  8,776
  9,301
  9,852
  10,428
  11,032
Earnings before tax, $m
  -18
  153
  65
  -24
  -116
  -213
  -312
  -416
  -524
  -636
  -753
  -753
  -879
  -1,010
  -1,146
  -1,288
  -1,436
  -1,590
  -1,750
  -1,918
  -2,093
  -2,275
  -2,466
  -2,665
  -2,873
  -3,091
  -3,319
  -3,558
  -3,808
  -4,069
  -4,343
Tax expense, $m
  -72
  41
  17
  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
Net income, $m
  5
  111
  47
  -24
  -116
  -213
  -312
  -416
  -524
  -636
  -753
  -753
  -879
  -1,010
  -1,146
  -1,288
  -1,436
  -1,590
  -1,750
  -1,918
  -2,093
  -2,275
  -2,466
  -2,665
  -2,873
  -3,091
  -3,319
  -3,558
  -3,808
  -4,069
  -4,343

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  301
  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
  37,475
  40,575
  44,064
  47,695
  51,471
  55,395
  59,473
  63,711
  68,116
  72,694
  77,456
  82,409
  87,564
  92,931
  98,522
  104,350
  110,427
  116,767
  123,384
  130,294
  137,513
  145,057
  152,945
  161,195
  169,826
  178,859
  188,316
  198,218
  208,590
  219,456
  230,842
Adjusted assets (=assets-cash), $m
  37,174
  40,575
  44,064
  47,695
  51,471
  55,395
  59,473
  63,711
  68,116
  72,694
  77,456
  82,409
  87,564
  92,931
  98,522
  104,350
  110,427
  116,767
  123,384
  130,294
  137,513
  145,057
  152,945
  161,195
  169,826
  178,859
  188,316
  198,218
  208,590
  219,456
  230,842
Revenue / Adjusted assets
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
  0.089
Average production assets, $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
Working capital, $m
  -1,116
  209
  227
  246
  266
  286
  307
  329
  352
  375
  400
  425
  452
  480
  509
  539
  570
  603
  637
  673
  710
  749
  790
  832
  877
  923
  972
  1,023
  1,077
  1,133
  1,192
Total debt, $m
  13,967
  16,530
  19,468
  22,525
  25,704
  29,009
  32,443
  36,011
  39,719
  43,575
  47,584
  51,754
  56,095
  60,614
  65,322
  70,229
  75,346
  80,684
  86,255
  92,074
  98,152
  104,504
  111,146
  118,092
  125,359
  132,965
  140,928
  149,266
  157,999
  167,148
  176,735
Total liabilities, $m
  31,600
  34,164
  37,102
  40,159
  43,338
  46,643
  50,077
  53,645
  57,353
  61,209
  65,218
  69,388
  73,729
  78,248
  82,956
  87,863
  92,980
  98,318
  103,889
  109,708
  115,786
  122,138
  128,780
  135,726
  142,993
  150,599
  158,562
  166,900
  175,633
  184,782
  194,369
Total equity, $m
  5,874
  6,411
  6,962
  7,536
  8,132
  8,752
  9,397
  10,066
  10,762
  11,486
  12,238
  13,021
  13,835
  14,683
  15,567
  16,487
  17,447
  18,449
  19,495
  20,586
  21,727
  22,919
  24,165
  25,469
  26,832
  28,260
  29,754
  31,318
  32,957
  34,674
  36,473
Total liabilities and equity, $m
  37,474
  40,575
  44,064
  47,695
  51,470
  55,395
  59,474
  63,711
  68,115
  72,695
  77,456
  82,409
  87,564
  92,931
  98,523
  104,350
  110,427
  116,767
  123,384
  130,294
  137,513
  145,057
  152,945
  161,195
  169,825
  178,859
  188,316
  198,218
  208,590
  219,456
  230,842
Debt-to-equity ratio
  2.378
  2.580
  2.800
  2.990
  3.160
  3.310
  3.450
  3.580
  3.690
  3.790
  3.890
  3.970
  4.050
  4.130
  4.200
  4.260
  4.320
  4.370
  4.420
  4.470
  4.520
  4.560
  4.600
  4.640
  4.670
  4.710
  4.740
  4.770
  4.790
  4.820
  4.850
Adjusted equity ratio
  0.150
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  5
  111
  47
  -24
  -116
  -213
  -312
  -416
  -524
  -636
  -753
  -753
  -879
  -1,010
  -1,146
  -1,288
  -1,436
  -1,590
  -1,750
  -1,918
  -2,093
  -2,275
  -2,466
  -2,665
  -2,873
  -3,091
  -3,319
  -3,558
  -3,808
  -4,069
  -4,343
Depreciation, amort., depletion, $m
  1,055
  121
  121
  121
  121
  121
  121
  121
  121
  121
  121
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Funds from operations, $m
  692
  232
  168
  97
  5
  -91
  -191
  -295
  -403
  -515
  -632
  -753
  -879
  -1,010
  -1,146
  -1,288
  -1,436
  -1,590
  -1,750
  -1,918
  -2,093
  -2,275
  -2,466
  -2,665
  -2,873
  -3,091
  -3,319
  -3,558
  -3,808
  -4,069
  -4,343
Change in working capital, $m
  -162
  17
  18
  19
  19
  20
  21
  22
  23
  24
  25
  26
  27
  28
  29
  30
  31
  33
  34
  36
  37
  39
  41
  43
  45
  47
  49
  51
  54
  56
  59
Cash from operations, $m
  854
  215
  150
  78
  -15
  -112
  -212
  -317
  -426
  -539
  -656
  -778
  -905
  -1,037
  -1,175
  -1,318
  -1,467
  -1,622
  -1,784
  -1,953
  -2,130
  -2,314
  -2,507
  -2,708
  -2,918
  -3,138
  -3,368
  -3,609
  -3,861
  -4,125
  -4,402
Maintenance CAPEX, $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
New CAPEX, $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 investing activities, $m
  -4,311
  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
Free cash flow, $m
  -3,457
  215
  150
  78
  -15
  -112
  -212
  -317
  -426
  -539
  -656
  -778
  -905
  -1,037
  -1,175
  -1,318
  -1,467
  -1,622
  -1,784
  -1,953
  -2,130
  -2,314
  -2,507
  -2,708
  -2,918
  -3,138
  -3,368
  -3,609
  -3,861
  -4,125
  -4,402
Issuance/(repayment) of debt, $m
  2,029
  2,864
  2,938
  3,057
  3,179
  3,304
  3,434
  3,568
  3,709
  3,855
  4,009
  4,170
  4,340
  4,519
  4,708
  4,907
  5,117
  5,338
  5,572
  5,818
  6,078
  6,352
  6,641
  6,946
  7,267
  7,606
  7,962
  8,338
  8,733
  9,149
  9,587
Issuance/(repurchase) of shares, $m
  1,086
  425
  504
  598
  713
  833
  957
  1,086
  1,220
  1,360
  1,505
  1,535
  1,693
  1,858
  2,029
  2,209
  2,396
  2,591
  2,796
  3,009
  3,233
  3,467
  3,712
  3,969
  4,237
  4,519
  4,814
  5,123
  5,447
  5,786
  6,142
Cash from financing (excl. dividends), $m  
  4,415
  3,289
  3,442
  3,655
  3,892
  4,137
  4,391
  4,654
  4,929
  5,215
  5,514
  5,705
  6,033
  6,377
  6,737
  7,116
  7,513
  7,929
  8,368
  8,827
  9,311
  9,819
  10,353
  10,915
  11,504
  12,125
  12,776
  13,461
  14,180
  14,935
  15,729
Total cash flow (excl. dividends), $m
  971
  3,505
  3,593
  3,733
  3,877
  4,025
  4,178
  4,337
  4,503
  4,676
  4,858
  4,928
  5,128
  5,340
  5,563
  5,798
  6,046
  6,307
  6,583
  6,874
  7,181
  7,505
  7,847
  8,207
  8,587
  8,987
  9,408
  9,851
  10,318
  10,810
  11,328
Retained Cash Flow (-), $m
  -1,057
  -537
  -551
  -598
  -713
  -833
  -957
  -1,086
  -1,220
  -1,360
  -1,505
  -1,535
  -1,693
  -1,858
  -2,029
  -2,209
  -2,396
  -2,591
  -2,796
  -3,009
  -3,233
  -3,467
  -3,712
  -3,969
  -4,237
  -4,519
  -4,814
  -5,123
  -5,447
  -5,786
  -6,142
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
 
  2,968
  3,041
  3,136
  3,164
  3,193
  3,221
  3,251
  3,283
  3,316
  3,353
  3,392
  3,435
  3,482
  3,533
  3,589
  3,650
  3,716
  3,787
  3,865
  3,948
  4,038
  4,135
  4,239
  4,349
  4,468
  4,594
  4,729
  4,872
  5,024
  5,185
Discount rate, %
 
  11.00
  11.55
  12.13
  12.73
  13.37
  14.04
  14.74
  15.48
  16.25
  17.06
  17.92
  18.81
  19.75
  20.74
  21.78
  22.87
  24.01
  25.21
  26.47
  27.80
  29.19
  30.65
  32.18
  33.79
  35.48
  37.25
  39.11
  41.07
  43.12
  45.28
PV of cash for distribution, $m
 
  2,674
  2,444
  2,224
  1,959
  1,705
  1,465
  1,242
  1,038
  855
  694
  553
  434
  334
  252
  187
  135
  96
  66
  45
  29
  19
  12
  7
  4
  2
  1
  1
  0
  0
  0
Current shareholders' claim on cash, %
  100
  94.9
  89.7
  84.4
  78.8
  73.3
  67.8
  62.5
  57.4
  52.5
  47.8
  43.8
  39.9
  36.3
  33.0
  29.8
  26.9
  24.3
  21.8
  19.6
  17.6
  15.7
  14.0
  12.5
  11.1
  9.9
  8.8
  7.8
  6.9
  6.1
  5.4

Brookfield Renewable Partners L.P., formerly Brookfield Renewable Energy Partners L.P., is the owner and operator of a portfolio of assets that generate electricity from renewable resources. The Company operates as a pure-play renewable power platform. Its segments include Hydroelectric, Wind, Other and Corporate. It operates renewable power generating assets, which include conventional hydroelectric facilities and wind facilities located in North America, Colombia, Brazil and Europe. It also operates approximately four biomass facilities and three Co-gen facilities. It owns approximately 10,730 megawatts (MW) of installed capacity and an over 6,000 MW development pipeline diversified across 15 power markets in North America, Colombia, Brazil and Europe. This portfolio includes approximately 217 hydroelectric generating stations on over 82 river systems and approximately 38 wind facilities. Its portfolio also includes over 3,000 MW of medium to long-term development projects.

FINANCIAL RATIOS  of  Brookfield Renewable Partners L.P. (BEP-UN)

Valuation Ratios
P/E Ratio 1472.5
Price to Sales 2.2
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 8.6
Price to Free Cash Flow 8.6
Growth Rates
Sales Growth Rate 50.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 210.4%
Total Debt to Equity 237.8%
Interest Coverage 1
Management Effectiveness
Return On Assets -7.4%
Ret/ On Assets - 3 Yr. Avg. 0.2%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0.4%
Return On Equity 0.1%
Return On Equity - 3 Yr. Avg. 1.2%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 57.7%
Gross Margin - 3 Yr. Avg. 64.3%
EBITDA Margin 55.3%
EBITDA Margin - 3 Yr. Avg. 62.8%
Operating Margin 24.4%
Oper. Margin - 3 Yr. Avg. 29.4%
Pre-Tax Margin -0.5%
Pre-Tax Margin - 3 Yr. Avg. 4.4%
Net Profit Margin 0.2%
Net Profit Margin - 3 Yr. Avg. 2.6%
Effective Tax Rate 400%
Eff/ Tax Rate - 3 Yr. Avg. 84.9%
Payout Ratio 15100%

BEP-UN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BEP-UN stock intrinsic value calculation we used $3313 million for the last fiscal year's total revenue generated by Brookfield Renewable Partners L.P.. The default revenue input number comes from 2016 income statement of Brookfield Renewable Partners L.P.. 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 BEP-UN stock valuation model: a) initial revenue growth rate of 9% 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 11%, whose default value for BEP-UN is calculated based on our internal credit rating of Brookfield Renewable Partners L.P., 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 Brookfield Renewable Partners L.P..
    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 BEP-UN stock the variable cost ratio is equal to 71.1%.

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 BEP-UN 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 6.6% for Brookfield Renewable Partners L.P..

Corporate tax rate of 27% is the nominal tax rate for Brookfield Renewable Partners L.P.. 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 BEP-UN 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 BEP-UN are equal to 0%.

Life of production assets of 0.6 years is the average useful life of capital assets used in Brookfield Renewable Partners L.P. 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 BEP-UN is equal to 5.8%. 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 - $5874 million for Brookfield Renewable Partners L.P. - 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 180.15 million for Brookfield Renewable Partners L.P. 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 Brookfield Renewable Partners L.P. at the current share price and the inputted number of shares is $8.0 billion.

RELATED COMPANIES Price Int.Val. Rating
RNW TransAlta Rene 13.61 9.42  sell
NPI Northland Powe 22.85 147.41  str.buy
INE Innergex Renew 14.37 1.07  str.sell
CPX Capital Power 25.14 6.71  str.sell
EMA Emera Incorpor 46.40 179.22  str.buy
TA TransAlta Corp 7.22 2.70  str.sell
Financial statements of BEP-UN
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.