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

Previous Close

$306.61

  Intrinsic Value

$608.62

stock screener

  Rating & Target

str. buy

+99%

  Value-price divergence*

+383%

Previous close

$306.61

 
Intrinsic value

$608.62

 
Up/down potential

+99%

 
Rating

str. buy

 
Value-price divergence*

+383%

*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 10.7

 

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, %
  30.80
  22.50
  20.75
  19.18
  17.76
  16.48
  15.33
  14.30
  13.37
  12.53
  11.78
  11.10
  10.49
  9.94
  9.45
  9.00
  8.60
  8.24
  7.92
  7.63
  7.36
  7.13
  6.91
  6.72
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.82
Revenue, $m
  3,975
  4,869
  5,880
  7,007
  8,252
  9,612
  11,085
  12,671
  14,365
  16,165
  18,069
  20,075
  22,181
  24,387
  26,691
  29,094
  31,597
  34,201
  36,910
  39,725
  42,650
  45,690
  48,849
  52,134
  55,549
  59,102
  62,799
  66,649
  70,660
  74,840
  79,199
Variable operating expenses, $m
 
  4,138
  4,973
  5,905
  6,933
  8,057
  9,275
  10,586
  11,986
  13,474
  15,048
  16,593
  18,333
  20,156
  22,061
  24,047
  26,116
  28,268
  30,507
  32,833
  35,251
  37,764
  40,375
  43,090
  45,912
  48,849
  51,905
  55,087
  58,402
  61,857
  65,460
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
  4,138
  4,973
  5,905
  6,933
  8,057
  9,275
  10,586
  11,986
  13,474
  15,048
  16,593
  18,333
  20,156
  22,061
  24,047
  26,116
  28,268
  30,507
  32,833
  35,251
  37,764
  40,375
  43,090
  45,912
  48,849
  51,905
  55,087
  58,402
  61,857
  65,460
Operating income, $m
  525
  732
  907
  1,102
  1,318
  1,554
  1,810
  2,085
  2,379
  2,691
  3,021
  3,483
  3,848
  4,231
  4,630
  5,047
  5,481
  5,933
  6,403
  6,891
  7,399
  7,926
  8,474
  9,044
  9,637
  10,253
  10,894
  11,562
  12,258
  12,983
  13,739
EBITDA, $m
  729
  997
  1,204
  1,435
  1,690
  1,969
  2,271
  2,595
  2,942
  3,311
  3,701
  4,112
  4,543
  4,995
  5,467
  5,959
  6,472
  7,005
  7,560
  8,137
  8,736
  9,359
  10,006
  10,678
  11,378
  12,106
  12,863
  13,652
  14,473
  15,329
  16,222
Interest expense (income), $m
  36
  56
  79
  105
  133
  165
  200
  238
  278
  321
  367
  416
  467
  521
  577
  636
  698
  762
  828
  897
  969
  1,044
  1,122
  1,202
  1,286
  1,373
  1,464
  1,559
  1,657
  1,760
  1,866
Earnings before tax, $m
  487
  676
  828
  998
  1,185
  1,389
  1,610
  1,847
  2,101
  2,370
  2,654
  3,067
  3,381
  3,710
  4,053
  4,411
  4,784
  5,172
  5,575
  5,994
  6,430
  6,882
  7,353
  7,842
  8,350
  8,879
  9,430
  10,004
  10,601
  11,224
  11,873
Tax expense, $m
  141
  182
  224
  269
  320
  375
  435
  499
  567
  640
  717
  828
  913
  1,002
  1,094
  1,191
  1,292
  1,396
  1,505
  1,618
  1,736
  1,858
  1,985
  2,117
  2,255
  2,397
  2,546
  2,701
  2,862
  3,030
  3,206
Net income, $m
  347
  493
  604
  728
  865
  1,014
  1,175
  1,349
  1,533
  1,730
  1,937
  2,239
  2,468
  2,708
  2,959
  3,220
  3,492
  3,775
  4,070
  4,376
  4,694
  5,024
  5,367
  5,724
  6,096
  6,482
  6,884
  7,303
  7,739
  8,193
  8,667

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
  5,020
  6,062
  7,224
  8,507
  9,909
  11,428
  13,062
  14,809
  16,665
  18,628
  20,696
  22,867
  25,141
  27,516
  29,994
  32,574
  35,259
  38,051
  40,953
  43,969
  47,103
  50,360
  53,746
  57,267
  60,930
  64,742
  68,711
  72,845
  77,155
  81,649
Adjusted assets (=assets-cash), $m
  4,097
  5,020
  6,062
  7,224
  8,507
  9,909
  11,428
  13,062
  14,809
  16,665
  18,628
  20,696
  22,867
  25,141
  27,516
  29,994
  32,574
  35,259
  38,051
  40,953
  43,969
  47,103
  50,360
  53,746
  57,267
  60,930
  64,742
  68,711
  72,845
  77,155
  81,649
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
  1,923
  2,323
  2,768
  3,259
  3,797
  4,379
  5,005
  5,674
  6,385
  7,137
  7,930
  8,762
  9,633
  10,543
  11,492
  12,481
  13,510
  14,579
  15,691
  16,847
  18,048
  19,295
  20,593
  21,942
  23,345
  24,806
  26,327
  27,911
  29,562
  31,284
Working capital, $m
  754
  214
  259
  308
  363
  423
  488
  558
  632
  711
  795
  883
  976
  1,073
  1,174
  1,280
  1,390
  1,505
  1,624
  1,748
  1,877
  2,010
  2,149
  2,294
  2,444
  2,600
  2,763
  2,933
  3,109
  3,293
  3,485
Total debt, $m
  1,601
  2,251
  2,989
  3,812
  4,720
  5,712
  6,788
  7,945
  9,182
  10,496
  11,886
  13,350
  14,887
  16,497
  18,179
  19,933
  21,760
  23,661
  25,637
  27,692
  29,827
  32,046
  34,352
  36,749
  39,242
  41,835
  44,534
  47,344
  50,272
  53,323
  56,504
Total liabilities, $m
  2,904
  3,554
  4,292
  5,115
  6,023
  7,015
  8,091
  9,248
  10,485
  11,799
  13,189
  14,653
  16,190
  17,800
  19,482
  21,236
  23,063
  24,964
  26,940
  28,995
  31,130
  33,349
  35,655
  38,052
  40,545
  43,138
  45,837
  48,647
  51,575
  54,626
  57,807
Total equity, $m
  1,775
  1,466
  1,770
  2,109
  2,484
  2,893
  3,337
  3,814
  4,324
  4,866
  5,439
  6,043
  6,677
  7,341
  8,035
  8,758
  9,512
  10,296
  11,111
  11,958
  12,839
  13,754
  14,705
  15,694
  16,722
  17,791
  18,905
  20,064
  21,271
  22,529
  23,841
Total liabilities and equity, $m
  4,679
  5,020
  6,062
  7,224
  8,507
  9,908
  11,428
  13,062
  14,809
  16,665
  18,628
  20,696
  22,867
  25,141
  27,517
  29,994
  32,575
  35,260
  38,051
  40,953
  43,969
  47,103
  50,360
  53,746
  57,267
  60,929
  64,742
  68,711
  72,846
  77,155
  81,648
Debt-to-equity ratio
  0.902
  1.540
  1.690
  1.810
  1.900
  1.970
  2.030
  2.080
  2.120
  2.160
  2.190
  2.210
  2.230
  2.250
  2.260
  2.280
  2.290
  2.300
  2.310
  2.320
  2.320
  2.330
  2.340
  2.340
  2.350
  2.350
  2.360
  2.360
  2.360
  2.370
  2.370
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
  493
  604
  728
  865
  1,014
  1,175
  1,349
  1,533
  1,730
  1,937
  2,239
  2,468
  2,708
  2,959
  3,220
  3,492
  3,775
  4,070
  4,376
  4,694
  5,024
  5,367
  5,724
  6,096
  6,482
  6,884
  7,303
  7,739
  8,193
  8,667
Depreciation, amort., depletion, $m
  204
  266
  298
  333
  372
  415
  461
  510
  564
  620
  680
  629
  695
  765
  837
  912
  991
  1,072
  1,157
  1,245
  1,337
  1,432
  1,531
  1,634
  1,741
  1,853
  1,969
  2,089
  2,215
  2,346
  2,483
Funds from operations, $m
  387
  759
  902
  1,061
  1,237
  1,428
  1,636
  1,859
  2,097
  2,350
  2,617
  2,868
  3,163
  3,472
  3,795
  4,132
  4,483
  4,847
  5,227
  5,621
  6,031
  6,456
  6,899
  7,359
  7,837
  8,335
  8,853
  9,392
  9,954
  10,539
  11,150
Change in working capital, $m
  -177
  39
  44
  50
  55
  60
  65
  70
  75
  79
  84
  88
  93
  97
  101
  106
  110
  115
  119
  124
  129
  134
  139
  145
  150
  156
  163
  169
  176
  184
  192
Cash from operations, $m
  564
  720
  858
  1,012
  1,182
  1,369
  1,571
  1,789
  2,022
  2,271
  2,533
  2,780
  3,071
  3,375
  3,694
  4,026
  4,373
  4,733
  5,108
  5,497
  5,902
  6,323
  6,760
  7,214
  7,687
  8,178
  8,690
  9,223
  9,777
  10,356
  10,958
Maintenance CAPEX, $m
  0
  -125
  -153
  -184
  -220
  -259
  -301
  -348
  -397
  -450
  -507
  -566
  -629
  -695
  -765
  -837
  -912
  -991
  -1,072
  -1,157
  -1,245
  -1,337
  -1,432
  -1,531
  -1,634
  -1,741
  -1,853
  -1,969
  -2,089
  -2,215
  -2,346
New CAPEX, $m
  -235
  -354
  -399
  -445
  -492
  -537
  -582
  -626
  -669
  -711
  -752
  -792
  -832
  -871
  -910
  -949
  -989
  -1,029
  -1,070
  -1,112
  -1,156
  -1,201
  -1,248
  -1,297
  -1,349
  -1,403
  -1,461
  -1,521
  -1,584
  -1,651
  -1,722
Cash from investing activities, $m
  -797
  -479
  -552
  -629
  -712
  -796
  -883
  -974
  -1,066
  -1,161
  -1,259
  -1,358
  -1,461
  -1,566
  -1,675
  -1,786
  -1,901
  -2,020
  -2,142
  -2,269
  -2,401
  -2,538
  -2,680
  -2,828
  -2,983
  -3,144
  -3,314
  -3,490
  -3,673
  -3,866
  -4,068
Free cash flow, $m
  -233
  241
  306
  382
  471
  573
  688
  815
  956
  1,109
  1,274
  1,421
  1,609
  1,809
  2,019
  2,240
  2,472
  2,714
  2,966
  3,228
  3,501
  3,785
  4,080
  4,386
  4,703
  5,034
  5,377
  5,733
  6,104
  6,489
  6,890
Issuance/(repayment) of debt, $m
  533
  654
  737
  823
  908
  993
  1,076
  1,157
  1,236
  1,314
  1,390
  1,464
  1,537
  1,610
  1,682
  1,754
  1,827
  1,901
  1,977
  2,055
  2,135
  2,219
  2,306
  2,397
  2,493
  2,593
  2,699
  2,810
  2,927
  3,051
  3,182
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
  654
  737
  823
  908
  993
  1,076
  1,157
  1,236
  1,314
  1,390
  1,464
  1,537
  1,610
  1,682
  1,754
  1,827
  1,901
  1,977
  2,055
  2,135
  2,219
  2,306
  2,397
  2,493
  2,593
  2,699
  2,810
  2,927
  3,051
  3,182
Total cash flow (excl. dividends), $m
  249
  895
  1,043
  1,205
  1,379
  1,565
  1,763
  1,973
  2,193
  2,423
  2,664
  2,885
  3,147
  3,419
  3,701
  3,994
  4,299
  4,615
  4,942
  5,283
  5,636
  6,004
  6,386
  6,783
  7,196
  7,627
  8,075
  8,543
  9,031
  9,540
  10,072
Retained Cash Flow (-), $m
  -153
  -269
  -304
  -339
  -375
  -409
  -444
  -477
  -510
  -542
  -573
  -604
  -634
  -664
  -694
  -723
  -753
  -784
  -815
  -847
  -881
  -915
  -951
  -989
  -1,028
  -1,070
  -1,113
  -1,159
  -1,207
  -1,258
  -1,312
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
 
  1,204
  739
  866
  1,005
  1,156
  1,320
  1,495
  1,683
  1,881
  2,091
  2,281
  2,513
  2,755
  3,007
  3,271
  3,545
  3,831
  4,127
  4,435
  4,756
  5,089
  5,434
  5,794
  6,168
  6,557
  6,962
  7,384
  7,824
  8,282
  8,760
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
 
  1,154
  677
  753
  827
  896
  958
  1,010
  1,052
  1,081
  1,096
  1,083
  1,072
  1,047
  1,010
  960
  901
  833
  760
  683
  604
  526
  451
  380
  314
  255
  203
  158
  121
  90
  66
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 31.1
Price to Sales 2.7
Price to Book 6.1
Price to Tangible Book
Price to Cash Flow 19.1
Price to Free Cash Flow 32.8
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 22.5% 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 34.771 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 $10.7 billion.

RELATED COMPANIES Price Int.Val. Rating
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Stock chart of CCL-B Financial statements of CCL-B
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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