Intrinsic value of Enerflex Ltd. - EFX

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$17.84

  Intrinsic Value

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  Value-price divergence*

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$17.84

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

We calculate the intrinsic value of EFX 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 1.5

 

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, %
  -30.57
  30.50
  27.95
  25.66
  23.59
  21.73
  20.06
  18.55
  17.20
  15.98
  14.88
  13.89
  13.00
  12.20
  11.48
  10.83
  10.25
  9.73
  9.25
  8.83
  8.44
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
  6.20
Revenue, $m
  1,131
  1,476
  1,888
  2,373
  2,933
  3,570
  4,286
  5,081
  5,955
  6,907
  7,934
  9,036
  10,211
  11,457
  12,773
  14,156
  15,607
  17,125
  18,710
  20,361
  22,081
  23,870
  25,729
  27,662
  29,670
  31,757
  33,926
  36,181
  38,527
  40,967
  43,508
Variable operating expenses, $m
 
  924
  1,167
  1,451
  1,780
  2,154
  2,575
  3,042
  3,555
  4,114
  4,718
  5,308
  5,998
  6,730
  7,503
  8,316
  9,168
  10,060
  10,991
  11,961
  12,971
  14,022
  15,114
  16,249
  17,429
  18,655
  19,929
  21,254
  22,632
  24,065
  25,558
Fixed operating expenses, $m
 
  530
  543
  557
  571
  585
  600
  615
  630
  646
  662
  678
  695
  713
  731
  749
  767
  787
  806
  827
  847
  868
  890
  912
  935
  958
  982
  1,007
  1,032
  1,058
  1,084
Total operating expenses, $m
  1,226
  1,454
  1,710
  2,008
  2,351
  2,739
  3,175
  3,657
  4,185
  4,760
  5,380
  5,986
  6,693
  7,443
  8,234
  9,065
  9,935
  10,847
  11,797
  12,788
  13,818
  14,890
  16,004
  17,161
  18,364
  19,613
  20,911
  22,261
  23,664
  25,123
  26,642
Operating income, $m
  -95
  22
  179
  365
  582
  831
  1,112
  1,425
  1,770
  2,147
  2,554
  3,050
  3,518
  4,014
  4,539
  5,092
  5,672
  6,279
  6,913
  7,574
  8,263
  8,980
  9,725
  10,500
  11,306
  12,144
  13,015
  13,920
  14,863
  15,844
  16,866
EBITDA, $m
  159
  234
  434
  671
  947
  1,262
  1,618
  2,014
  2,451
  2,928
  3,443
  3,997
  4,588
  5,215
  5,878
  6,575
  7,307
  8,074
  8,874
  9,708
  10,577
  11,481
  12,421
  13,399
  14,415
  15,472
  16,570
  17,712
  18,901
  20,137
  21,425
Interest expense (income), $m
  14
  14
  22
  32
  43
  56
  72
  89
  107
  128
  151
  175
  201
  229
  259
  290
  323
  357
  393
  430
  470
  510
  553
  597
  643
  690
  740
  791
  845
  900
  958
Earnings before tax, $m
  -96
  8
  157
  333
  539
  774
  1,040
  1,336
  1,662
  2,018
  2,404
  2,875
  3,316
  3,785
  4,281
  4,802
  5,349
  5,922
  6,520
  7,144
  7,793
  8,469
  9,172
  9,903
  10,663
  11,453
  12,275
  13,129
  14,018
  14,944
  15,908
Tax expense, $m
  9
  2
  42
  90
  146
  209
  281
  361
  449
  545
  649
  776
  895
  1,022
  1,156
  1,297
  1,444
  1,599
  1,760
  1,929
  2,104
  2,287
  2,477
  2,674
  2,879
  3,092
  3,314
  3,545
  3,785
  4,035
  4,295
Net income, $m
  -105
  6
  114
  243
  393
  565
  759
  975
  1,214
  1,473
  1,755
  2,099
  2,421
  2,763
  3,125
  3,506
  3,905
  4,323
  4,760
  5,215
  5,689
  6,183
  6,696
  7,229
  7,784
  8,361
  8,961
  9,584
  10,233
  10,909
  11,613

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  168
  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
  1,882
  2,236
  2,861
  3,595
  4,444
  5,409
  6,494
  7,699
  9,023
  10,464
  12,021
  13,691
  15,472
  17,359
  19,353
  21,449
  23,648
  25,947
  28,348
  30,851
  33,456
  36,166
  38,983
  41,911
  44,954
  48,116
  51,403
  54,820
  58,374
  62,072
  65,921
Adjusted assets (=assets-cash), $m
  1,714
  2,236
  2,861
  3,595
  4,444
  5,409
  6,494
  7,699
  9,023
  10,464
  12,021
  13,691
  15,472
  17,359
  19,353
  21,449
  23,648
  25,947
  28,348
  30,851
  33,456
  36,166
  38,983
  41,911
  44,954
  48,116
  51,403
  54,820
  58,374
  62,072
  65,921
Revenue / Adjusted assets
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
Average production assets, $m
  593
  773
  990
  1,243
  1,537
  1,871
  2,246
  2,663
  3,120
  3,619
  4,157
  4,735
  5,351
  6,004
  6,693
  7,418
  8,178
  8,974
  9,804
  10,669
  11,570
  12,508
  13,482
  14,495
  15,547
  16,641
  17,777
  18,959
  20,188
  21,467
  22,798
Working capital, $m
  340
  224
  287
  361
  446
  543
  651
  772
  905
  1,050
  1,206
  1,374
  1,552
  1,741
  1,941
  2,152
  2,372
  2,603
  2,844
  3,095
  3,356
  3,628
  3,911
  4,205
  4,510
  4,827
  5,157
  5,500
  5,856
  6,227
  6,613
Total debt, $m
  394
  627
  906
  1,234
  1,613
  2,045
  2,530
  3,068
  3,660
  4,305
  5,001
  5,747
  6,543
  7,387
  8,278
  9,215
  10,197
  11,226
  12,299
  13,417
  14,582
  15,793
  17,053
  18,361
  19,722
  21,135
  22,604
  24,132
  25,720
  27,373
  29,094
Total liabilities, $m
  767
  1,000
  1,279
  1,607
  1,986
  2,418
  2,903
  3,441
  4,033
  4,678
  5,374
  6,120
  6,916
  7,760
  8,651
  9,588
  10,570
  11,599
  12,672
  13,790
  14,955
  16,166
  17,426
  18,734
  20,095
  21,508
  22,977
  24,505
  26,093
  27,746
  29,467
Total equity, $m
  1,115
  1,237
  1,582
  1,988
  2,457
  2,991
  3,591
  4,257
  4,990
  5,787
  6,648
  7,571
  8,556
  9,600
  10,702
  11,861
  13,077
  14,349
  15,677
  17,060
  18,501
  20,000
  21,558
  23,177
  24,860
  26,608
  28,426
  30,315
  32,281
  34,326
  36,454
Total liabilities and equity, $m
  1,882
  2,237
  2,861
  3,595
  4,443
  5,409
  6,494
  7,698
  9,023
  10,465
  12,022
  13,691
  15,472
  17,360
  19,353
  21,449
  23,647
  25,948
  28,349
  30,850
  33,456
  36,166
  38,984
  41,911
  44,955
  48,116
  51,403
  54,820
  58,374
  62,072
  65,921
Debt-to-equity ratio
  0.353
  0.510
  0.570
  0.620
  0.660
  0.680
  0.700
  0.720
  0.730
  0.740
  0.750
  0.760
  0.760
  0.770
  0.770
  0.780
  0.780
  0.780
  0.780
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.800
  0.800
  0.800
  0.800
  0.800
Adjusted equity ratio
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553
  0.553

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -105
  6
  114
  243
  393
  565
  759
  975
  1,214
  1,473
  1,755
  2,099
  2,421
  2,763
  3,125
  3,506
  3,905
  4,323
  4,760
  5,215
  5,689
  6,183
  6,696
  7,229
  7,784
  8,361
  8,961
  9,584
  10,233
  10,909
  11,613
Depreciation, amort., depletion, $m
  254
  212
  255
  306
  365
  431
  506
  590
  681
  781
  889
  947
  1,070
  1,201
  1,339
  1,484
  1,636
  1,795
  1,961
  2,134
  2,314
  2,502
  2,696
  2,899
  3,109
  3,328
  3,555
  3,792
  4,038
  4,293
  4,560
Funds from operations, $m
  51
  218
  370
  549
  758
  997
  1,266
  1,565
  1,895
  2,254
  2,643
  3,046
  3,491
  3,964
  4,463
  4,989
  5,541
  6,118
  6,720
  7,349
  8,003
  8,684
  9,392
  10,128
  10,894
  11,689
  12,516
  13,376
  14,271
  15,202
  16,172
Change in working capital, $m
  -41
  52
  63
  74
  85
  97
  109
  121
  133
  145
  156
  168
  179
  189
  200
  210
  221
  231
  241
  251
  261
  272
  283
  294
  305
  317
  330
  343
  357
  371
  386
Cash from operations, $m
  92
  120
  307
  476
  673
  900
  1,157
  1,444
  1,762
  2,110
  2,487
  2,878
  3,313
  3,775
  4,263
  4,779
  5,320
  5,887
  6,480
  7,098
  7,742
  8,412
  9,110
  9,835
  10,588
  11,372
  12,186
  13,033
  13,914
  14,831
  15,786
Maintenance CAPEX, $m
  0
  -119
  -155
  -198
  -249
  -307
  -374
  -449
  -533
  -624
  -724
  -831
  -947
  -1,070
  -1,201
  -1,339
  -1,484
  -1,636
  -1,795
  -1,961
  -2,134
  -2,314
  -2,502
  -2,696
  -2,899
  -3,109
  -3,328
  -3,555
  -3,792
  -4,038
  -4,293
New CAPEX, $m
  -22
  -181
  -216
  -254
  -293
  -334
  -375
  -417
  -458
  -499
  -538
  -578
  -616
  -653
  -689
  -725
  -760
  -795
  -830
  -865
  -901
  -937
  -974
  -1,013
  -1,052
  -1,094
  -1,137
  -1,182
  -1,229
  -1,279
  -1,331
Cash from investing activities, $m
  19
  -300
  -371
  -452
  -542
  -641
  -749
  -866
  -991
  -1,123
  -1,262
  -1,409
  -1,563
  -1,723
  -1,890
  -2,064
  -2,244
  -2,431
  -2,625
  -2,826
  -3,035
  -3,251
  -3,476
  -3,709
  -3,951
  -4,203
  -4,465
  -4,737
  -5,021
  -5,317
  -5,624
Free cash flow, $m
  111
  -180
  -64
  24
  131
  258
  407
  578
  772
  987
  1,225
  1,469
  1,750
  2,052
  2,373
  2,715
  3,076
  3,456
  3,854
  4,271
  4,707
  5,161
  5,634
  6,126
  6,637
  7,169
  7,722
  8,296
  8,894
  9,515
  10,162
Issuance/(repayment) of debt, $m
  -186
  233
  279
  328
  379
  432
  485
  539
  592
  644
  696
  746
  796
  844
  891
  937
  983
  1,028
  1,073
  1,119
  1,165
  1,211
  1,259
  1,309
  1,360
  1,413
  1,469
  1,527
  1,589
  1,653
  1,721
Issuance/(repurchase) of shares, $m
  114
  69
  130
  54
  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  
  -73
  302
  409
  382
  379
  432
  485
  539
  592
  644
  696
  746
  796
  844
  891
  937
  983
  1,028
  1,073
  1,119
  1,165
  1,211
  1,259
  1,309
  1,360
  1,413
  1,469
  1,527
  1,589
  1,653
  1,721
Total cash flow (excl. dividends), $m
  36
  53
  215
  352
  510
  690
  892
  1,117
  1,363
  1,632
  1,921
  2,215
  2,546
  2,895
  3,264
  3,652
  4,059
  4,484
  4,928
  5,390
  5,871
  6,372
  6,893
  7,434
  7,997
  8,582
  9,191
  9,824
  10,482
  11,168
  11,882
Retained Cash Flow (-), $m
  39
  -290
  -346
  -406
  -469
  -534
  -600
  -666
  -732
  -797
  -861
  -923
  -984
  -1,044
  -1,102
  -1,159
  -1,216
  -1,272
  -1,328
  -1,384
  -1,441
  -1,499
  -1,558
  -1,619
  -1,683
  -1,749
  -1,818
  -1,890
  -1,965
  -2,045
  -2,129
Prev. year cash balance distribution, $m
 
  168
  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
 
  0
  0
  0
  41
  156
  292
  451
  631
  834
  1,060
  1,292
  1,561
  1,851
  2,162
  2,493
  2,843
  3,212
  3,600
  4,006
  4,431
  4,874
  5,335
  5,815
  6,315
  6,834
  7,373
  7,934
  8,517
  9,123
  9,754
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
 
  0
  0
  0
  34
  121
  212
  304
  395
  479
  556
  614
  666
  704
  726
  732
  722
  699
  663
  617
  563
  504
  443
  381
  322
  266
  215
  170
  132
  100
  73
Current shareholders' claim on cash, %
  100
  95.0
  88.2
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0
  86.0

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power equipment worldwide. The company engineers, designs, manufactures, constructs, and installs natural gas processing equipment; offers compression products, such as reciprocating compression, rotary screw compression, integral gas engine compression, and refrigeration compression services; and provides gas processing solutions, including dehydration, liquids recovery, refrigeration, cryogenic processing, condensate stabilization, dew point control, and amine sweetening. It also offers refrigeration systems and electric power systems. In addition, the company provides rental and leasing services for natural gas compression, power generation, and processing equipment; in-house engineering and mechanical services, and electrical service for gas engines, compressors, and electric power generators; and various parts and components, as well as operating, maintenance, and overhaul services. Further, it offers retrofit services to re-engineer, reconfigure, and repackage compressors; engineering, procurement, and construction services. Further, it provides integrated solutions include civil, earthworks, and concrete; piping and structural fabrication; maintaining equipment; installation of rotating equipment and packages; electrical, instrumentation, controls, and automation; and commissioning. The company was founded in 1980 and is headquartered in Calgary, Canada.

FINANCIAL RATIOS  of  Enerflex Ltd. (EFX)

Valuation Ratios
P/E Ratio -15
Price to Sales 1.4
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 17.1
Price to Free Cash Flow 22.5
Growth Rates
Sales Growth Rate -30.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -87.8%
Cap. Spend. - 3 Yr. Gr. Rate -9.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 35.3%
Total Debt to Equity 35.3%
Interest Coverage -6
Management Effectiveness
Return On Assets -4.4%
Ret/ On Assets - 3 Yr. Avg. 0.8%
Return On Total Capital -6.5%
Ret/ On T. Cap. - 3 Yr. Avg. 0.6%
Return On Equity -9.3%
Return On Equity - 3 Yr. Avg. 0.7%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 21.6%
Gross Margin - 3 Yr. Avg. 20.3%
EBITDA Margin 15.2%
EBITDA Margin - 3 Yr. Avg. 13.3%
Operating Margin -8.4%
Oper. Margin - 3 Yr. Avg. 1.5%
Pre-Tax Margin -8.5%
Pre-Tax Margin - 3 Yr. Avg. 1.3%
Net Profit Margin -9.3%
Net Profit Margin - 3 Yr. Avg. -0.8%
Effective Tax Rate -9.4%
Eff/ Tax Rate - 3 Yr. Avg. 22.2%
Payout Ratio -25.7%

EFX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EFX stock intrinsic value calculation we used $1131 million for the last fiscal year's total revenue generated by Enerflex Ltd.. The default revenue input number comes from 2016 income statement of Enerflex Ltd.. 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 EFX stock valuation model: a) initial revenue growth rate of 30.5% 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 EFX is calculated based on our internal credit rating of Enerflex Ltd., 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 Enerflex Ltd..
    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 EFX stock the variable cost ratio is equal to 63.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $517 million in the base year in the intrinsic value calculation for EFX 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 Enerflex Ltd..

Corporate tax rate of 27% is the nominal tax rate for Enerflex Ltd.. 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 EFX 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 EFX are equal to 52.4%.

Life of production assets of 4.9 years is the average useful life of capital assets used in Enerflex Ltd. 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 EFX is equal to 15.2%. 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 - $1115 million for Enerflex Ltd. - 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 85.28 million for Enerflex Ltd. 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 Enerflex Ltd. at the current share price and the inputted number of shares is $1.5 billion.


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