Intrinsic value of CCL Industries Inc. Unlimited Class B No - CCL-B

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$288.80

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$288.80

 
Intrinsic value

$1,050

 
Up/down potential

+263%

 
Rating

str. buy

 
Value-price divergence* premium content

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

We calculate the intrinsic value of CCL-B 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 10.1

 

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, %
  30.80
  32.40
  29.66
  27.19
  24.97
  22.98
  21.18
  19.56
  18.11
  16.79
  15.62
  14.55
  13.60
  12.74
  11.96
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
Revenue, $m
  3,975
  5,263
  6,824
  8,680
  10,847
  13,340
  16,165
  19,327
  22,826
  26,660
  30,823
  35,309
  40,110
  45,220
  50,630
  56,335
  62,330
  68,611
  75,177
  82,027
  89,165
  96,593
  104,319
  112,350
  120,696
  129,368
  138,382
  147,750
  157,492
  167,625
  178,170
Variable operating expenses, $m
 
  4,463
  5,753
  7,287
  9,079
  11,139
  13,474
  16,087
  18,980
  22,148
  25,589
  29,183
  33,152
  37,375
  41,847
  46,562
  51,517
  56,709
  62,135
  67,798
  73,697
  79,837
  86,222
  92,860
  99,758
  106,926
  114,375
  122,119
  130,171
  138,546
  147,261
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
  3,450
  4,463
  5,753
  7,287
  9,079
  11,139
  13,474
  16,087
  18,980
  22,148
  25,589
  29,183
  33,152
  37,375
  41,847
  46,562
  51,517
  56,709
  62,135
  67,798
  73,697
  79,837
  86,222
  92,860
  99,758
  106,926
  114,375
  122,119
  130,171
  138,546
  147,261
Operating income, $m
  525
  800
  1,071
  1,393
  1,769
  2,201
  2,691
  3,240
  3,847
  4,512
  5,234
  6,125
  6,958
  7,845
  8,783
  9,773
  10,813
  11,903
  13,042
  14,230
  15,468
  16,757
  18,097
  19,490
  20,938
  22,443
  24,006
  25,631
  27,321
  29,079
  30,909
EBITDA, $m
  729
  1,078
  1,398
  1,778
  2,222
  2,732
  3,311
  3,959
  4,675
  5,461
  6,313
  7,232
  8,216
  9,262
  10,370
  11,539
  12,767
  14,053
  15,398
  16,801
  18,263
  19,785
  21,367
  23,012
  24,722
  26,498
  28,344
  30,263
  32,259
  34,334
  36,494
Interest expense (income), $m
  36
  56
  89
  129
  176
  232
  295
  367
  448
  538
  635
  742
  856
  979
  1,110
  1,248
  1,394
  1,547
  1,707
  1,875
  2,050
  2,232
  2,422
  2,619
  2,825
  3,038
  3,259
  3,490
  3,729
  3,978
  4,237
Earnings before tax, $m
  487
  744
  982
  1,264
  1,592
  1,969
  2,396
  2,872
  3,399
  3,974
  4,598
  5,383
  6,102
  6,866
  7,674
  8,525
  9,419
  10,356
  11,334
  12,355
  13,418
  14,525
  15,675
  16,871
  18,114
  19,405
  20,747
  22,142
  23,593
  25,102
  26,672
Tax expense, $m
  141
  201
  265
  341
  430
  532
  647
  776
  918
  1,073
  1,242
  1,454
  1,647
  1,854
  2,072
  2,302
  2,543
  2,796
  3,060
  3,336
  3,623
  3,922
  4,232
  4,555
  4,891
  5,239
  5,602
  5,978
  6,370
  6,777
  7,201
Net income, $m
  347
  543
  717
  923
  1,162
  1,438
  1,749
  2,097
  2,481
  2,901
  3,357
  3,930
  4,454
  5,012
  5,602
  6,223
  6,876
  7,560
  8,274
  9,019
  9,795
  10,603
  11,443
  12,316
  13,223
  14,166
  15,145
  16,164
  17,223
  18,324
  19,470

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  582
  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
  4,679
  5,426
  7,035
  8,948
  11,183
  13,752
  16,665
  19,925
  23,532
  27,484
  31,776
  36,401
  41,351
  46,618
  52,196
  58,077
  64,258
  70,733
  77,502
  84,564
  91,923
  99,581
  107,545
  115,825
  124,429
  133,369
  142,661
  152,320
  162,363
  172,809
  183,680
Adjusted assets (=assets-cash), $m
  4,097
  5,426
  7,035
  8,948
  11,183
  13,752
  16,665
  19,925
  23,532
  27,484
  31,776
  36,401
  41,351
  46,618
  52,196
  58,077
  64,258
  70,733
  77,502
  84,564
  91,923
  99,581
  107,545
  115,825
  124,429
  133,369
  142,661
  152,320
  162,363
  172,809
  183,680
Revenue / Adjusted assets
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
Average production assets, $m
  1,569
  2,079
  2,695
  3,428
  4,285
  5,269
  6,385
  7,634
  9,016
  10,531
  12,175
  13,947
  15,844
  17,862
  19,999
  22,252
  24,620
  27,101
  29,695
  32,401
  35,220
  38,154
  41,206
  44,378
  47,675
  51,101
  54,661
  58,361
  62,209
  66,212
  70,377
Working capital, $m
  754
  232
  300
  382
  477
  587
  711
  850
  1,004
  1,173
  1,356
  1,554
  1,765
  1,990
  2,228
  2,479
  2,743
  3,019
  3,308
  3,609
  3,923
  4,250
  4,590
  4,943
  5,311
  5,692
  6,089
  6,501
  6,930
  7,376
  7,839
Total debt, $m
  1,601
  2,538
  3,678
  5,032
  6,614
  8,434
  10,496
  12,804
  15,358
  18,156
  21,194
  24,469
  27,973
  31,703
  35,652
  39,816
  44,191
  48,776
  53,568
  58,569
  63,778
  69,200
  74,839
  80,701
  86,792
  93,123
  99,701
  106,540
  113,650
  121,046
  128,742
Total liabilities, $m
  2,904
  3,841
  4,981
  6,335
  7,917
  9,737
  11,799
  14,107
  16,661
  19,459
  22,497
  25,772
  29,276
  33,006
  36,955
  41,119
  45,494
  50,079
  54,871
  59,872
  65,081
  70,503
  76,142
  82,004
  88,095
  94,426
  101,004
  107,843
  114,953
  122,349
  130,045
Total equity, $m
  1,775
  1,584
  2,054
  2,613
  3,265
  4,016
  4,866
  5,818
  6,871
  8,025
  9,279
  10,629
  12,074
  13,612
  15,241
  16,959
  18,763
  20,654
  22,631
  24,693
  26,841
  29,078
  31,403
  33,821
  36,333
  38,944
  41,657
  44,477
  47,410
  50,460
  53,635
Total liabilities and equity, $m
  4,679
  5,425
  7,035
  8,948
  11,182
  13,753
  16,665
  19,925
  23,532
  27,484
  31,776
  36,401
  41,350
  46,618
  52,196
  58,078
  64,257
  70,733
  77,502
  84,565
  91,922
  99,581
  107,545
  115,825
  124,428
  133,370
  142,661
  152,320
  162,363
  172,809
  183,680
Debt-to-equity ratio
  0.902
  1.600
  1.790
  1.930
  2.030
  2.100
  2.160
  2.200
  2.240
  2.260
  2.280
  2.300
  2.320
  2.330
  2.340
  2.350
  2.360
  2.360
  2.370
  2.370
  2.380
  2.380
  2.380
  2.390
  2.390
  2.390
  2.390
  2.400
  2.400
  2.400
  2.400
Adjusted equity ratio
  0.291
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292
  0.292

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  347
  543
  717
  923
  1,162
  1,438
  1,749
  2,097
  2,481
  2,901
  3,357
  3,930
  4,454
  5,012
  5,602
  6,223
  6,876
  7,560
  8,274
  9,019
  9,795
  10,603
  11,443
  12,316
  13,223
  14,166
  15,145
  16,164
  17,223
  18,324
  19,470
Depreciation, amort., depletion, $m
  204
  278
  327
  385
  453
  531
  620
  719
  829
  949
  1,079
  1,107
  1,257
  1,418
  1,587
  1,766
  1,954
  2,151
  2,357
  2,571
  2,795
  3,028
  3,270
  3,522
  3,784
  4,056
  4,338
  4,632
  4,937
  5,255
  5,585
Funds from operations, $m
  387
  821
  1,044
  1,308
  1,616
  1,969
  2,369
  2,816
  3,310
  3,850
  4,436
  5,037
  5,712
  6,429
  7,189
  7,989
  8,830
  9,711
  10,631
  11,591
  12,591
  13,631
  14,713
  15,838
  17,007
  18,221
  19,483
  20,795
  22,160
  23,579
  25,056
Change in working capital, $m
  -177
  57
  69
  82
  95
  110
  124
  139
  154
  169
  183
  197
  211
  225
  238
  251
  264
  276
  289
  301
  314
  327
  340
  353
  367
  382
  397
  412
  429
  446
  464
Cash from operations, $m
  564
  963
  975
  1,226
  1,520
  1,859
  2,245
  2,677
  3,156
  3,681
  4,253
  4,839
  5,500
  6,205
  6,951
  7,738
  8,566
  9,434
  10,342
  11,289
  12,277
  13,304
  14,373
  15,484
  16,639
  17,840
  19,087
  20,383
  21,731
  23,133
  24,592
Maintenance CAPEX, $m
  0
  -125
  -165
  -214
  -272
  -340
  -418
  -507
  -606
  -716
  -836
  -966
  -1,107
  -1,257
  -1,418
  -1,587
  -1,766
  -1,954
  -2,151
  -2,357
  -2,571
  -2,795
  -3,028
  -3,270
  -3,522
  -3,784
  -4,056
  -4,338
  -4,632
  -4,937
  -5,255
New CAPEX, $m
  -235
  -510
  -617
  -733
  -856
  -984
  -1,116
  -1,249
  -1,382
  -1,514
  -1,644
  -1,772
  -1,897
  -2,018
  -2,137
  -2,254
  -2,368
  -2,481
  -2,593
  -2,706
  -2,819
  -2,934
  -3,052
  -3,172
  -3,297
  -3,426
  -3,560
  -3,701
  -3,848
  -4,003
  -4,165
Cash from investing activities, $m
  -797
  -635
  -782
  -947
  -1,128
  -1,324
  -1,534
  -1,756
  -1,988
  -2,230
  -2,480
  -2,738
  -3,004
  -3,275
  -3,555
  -3,841
  -4,134
  -4,435
  -4,744
  -5,063
  -5,390
  -5,729
  -6,080
  -6,442
  -6,819
  -7,210
  -7,616
  -8,039
  -8,480
  -8,940
  -9,420
Free cash flow, $m
  -233
  328
  194
  279
  392
  535
  710
  921
  1,168
  1,452
  1,773
  2,101
  2,497
  2,929
  3,396
  3,898
  4,432
  4,999
  5,598
  6,227
  6,886
  7,575
  8,293
  9,042
  9,821
  10,630
  11,471
  12,344
  13,251
  14,193
  15,172
Issuance/(repayment) of debt, $m
  533
  941
  1,139
  1,354
  1,582
  1,819
  2,062
  2,308
  2,554
  2,798
  3,039
  3,274
  3,505
  3,729
  3,949
  4,164
  4,376
  4,585
  4,792
  5,000
  5,210
  5,422
  5,639
  5,862
  6,092
  6,330
  6,579
  6,838
  7,110
  7,396
  7,696
Issuance/(repurchase) of shares, $m
  -23
  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  
  510
  941
  1,139
  1,354
  1,582
  1,819
  2,062
  2,308
  2,554
  2,798
  3,039
  3,274
  3,505
  3,729
  3,949
  4,164
  4,376
  4,585
  4,792
  5,000
  5,210
  5,422
  5,639
  5,862
  6,092
  6,330
  6,579
  6,838
  7,110
  7,396
  7,696
Total cash flow (excl. dividends), $m
  249
  1,270
  1,333
  1,634
  1,974
  2,354
  2,773
  3,229
  3,722
  4,250
  4,812
  5,375
  6,002
  6,658
  7,345
  8,062
  8,808
  9,584
  10,390
  11,227
  12,095
  12,997
  13,932
  14,904
  15,912
  16,960
  18,050
  19,183
  20,362
  21,589
  22,868
Retained Cash Flow (-), $m
  -153
  -387
  -470
  -559
  -653
  -750
  -850
  -952
  -1,053
  -1,154
  -1,253
  -1,350
  -1,445
  -1,538
  -1,629
  -1,717
  -1,805
  -1,891
  -1,977
  -2,062
  -2,149
  -2,236
  -2,326
  -2,418
  -2,512
  -2,611
  -2,713
  -2,820
  -2,933
  -3,050
  -3,174
Prev. year cash balance distribution, $m
 
  578
  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
 
  1,460
  863
  1,075
  1,322
  1,604
  1,922
  2,277
  2,668
  3,096
  3,558
  4,025
  4,556
  5,120
  5,717
  6,344
  7,003
  7,693
  8,413
  9,165
  9,947
  10,761
  11,607
  12,486
  13,400
  14,350
  15,336
  16,362
  17,429
  18,539
  19,694
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,400
  790
  936
  1,088
  1,243
  1,395
  1,538
  1,668
  1,778
  1,866
  1,911
  1,944
  1,947
  1,919
  1,863
  1,780
  1,674
  1,549
  1,411
  1,264
  1,113
  963
  818
  682
  558
  447
  351
  270
  202
  148
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

CCL Industries Inc., a specialty packaging company, manufactures and sells labels, containers, and consumer printable media products. It operates through Label, Avery, and Container segments. The Label segment offers pressure sensitive, shrink sleeve, stretch sleeve, in-mould, precision printed and die cut metal components, plastic components, expanded content labels, and pharmaceutical instructional leaflets; and extruded film materials for a range of decorative, instructional, and functional applications in the consumer packaging, healthcare and chemicals, consumer durables, electronic device, and automotive markets. This segment also provides extruded and laminated plastic tubes, folded instructional leaflets, printed and die cut metal components with LED displays, and other complementary products and services. The Avery segment supplies printable media, including address labels, shipping labels, marketing and product identification labels, indexes and dividers, business cards, and name badges and specialty labels, as well as customized software solutions. This segment also offers binders, sheet protectors, and writing instruments under the Avery and Zweckform brand names. The Container segment manufactures extruded aluminum aerosol cans and bottles for the personal care, home care, and cosmetic industries; and plus shaped aluminum bottles for the beverage market. The company has operations in Canada, the United States, Puerto Rico, Mexico, Brazil, Argentina, Europe, Asia, Australia, and Africa. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.

FINANCIAL RATIOS  of  CCL Industries Inc. Unlimited Class B No (CCL-B)

Valuation Ratios
P/E Ratio 29.3
Price to Sales 2.6
Price to Book 5.7
Price to Tangible Book
Price to Cash Flow 18
Price to Free Cash Flow 30.9
Growth Rates
Sales Growth Rate 30.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 36.6%
Cap. Spend. - 3 Yr. Gr. Rate 15.2%
Financial Strength
Quick Ratio 146
Current Ratio 0
LT Debt to Equity 90%
Total Debt to Equity 90.2%
Interest Coverage 15
Management Effectiveness
Return On Assets 9%
Ret/ On Assets - 3 Yr. Avg. 9.5%
Return On Total Capital 11.6%
Ret/ On T. Cap. - 3 Yr. Avg. 12.2%
Return On Equity 20.4%
Return On Equity - 3 Yr. Avg. 20.2%
Asset Turnover 1
Profitability Ratios
Gross Margin 29.4%
Gross Margin - 3 Yr. Avg. 28.2%
EBITDA Margin 18.3%
EBITDA Margin - 3 Yr. Avg. 18.8%
Operating Margin 13.2%
Oper. Margin - 3 Yr. Avg. 13.5%
Pre-Tax Margin 12.3%
Pre-Tax Margin - 3 Yr. Avg. 12.6%
Net Profit Margin 8.7%
Net Profit Margin - 3 Yr. Avg. 8.9%
Effective Tax Rate 29%
Eff/ Tax Rate - 3 Yr. Avg. 28.9%
Payout Ratio 20.2%

CCL-B stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CCL-B stock intrinsic value calculation we used $3975 million for the last fiscal year's total revenue generated by CCL Industries Inc. Unlimited Class B No. The default revenue input number comes from 2016 income statement of CCL Industries Inc. Unlimited Class B No. 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 CCL-B stock valuation model: a) initial revenue growth rate of 32.4% 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 4.3%, whose default value for CCL-B is calculated based on our internal credit rating of CCL Industries Inc. Unlimited Class B No, 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 CCL Industries Inc. Unlimited Class B No.
    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 CCL-B stock the variable cost ratio is equal to 85.5%.

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 CCL-B 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 3.5% for CCL Industries Inc. Unlimited Class B No.

Corporate tax rate of 27% is the nominal tax rate for CCL Industries Inc. Unlimited Class B No. 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 CCL-B 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 CCL-B are equal to 39.5%.

Life of production assets of 12.6 years is the average useful life of capital assets used in CCL Industries Inc. Unlimited Class B No 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 CCL-B is equal to 4.4%. 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 - $1775 million for CCL Industries Inc. Unlimited Class B No - 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 35.089 million for CCL Industries Inc. Unlimited Class B No 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 CCL Industries Inc. Unlimited Class B No at the current share price and the inputted number of shares is $10.1 billion.


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Stock chart of CCL-B Financial statements of CCL-B
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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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