Intrinsic value of Quebecor Inc. Class B Subordinate Voting - QBR-B

Previous Close

$41.15

  Intrinsic Value

$24.29

stock screener

  Rating & Target

sell

-41%

  Value-price divergence*

-70%

Previous close

$41.15

 
Intrinsic value

$24.29

 
Up/down potential

-41%

 
Rating

sell

 
Value-price divergence*

-70%

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

We calculate the intrinsic value of QBR-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 5.0

 

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, %
  3.24
  2.20
  2.48
  2.73
  2.96
  3.16
  3.35
  3.51
  3.66
  3.79
  3.92
  4.02
  4.12
  4.21
  4.29
  4.36
  4.42
  4.48
  4.53
  4.58
  4.62
  4.66
  4.69
  4.72
  4.75
  4.78
  4.80
  4.82
  4.84
  4.85
  4.87
Revenue, $m
  4,017
  4,105
  4,207
  4,322
  4,450
  4,591
  4,744
  4,911
  5,091
  5,284
  5,491
  5,712
  5,947
  6,198
  6,463
  6,745
  7,043
  7,359
  7,693
  8,045
  8,417
  8,809
  9,222
  9,658
  10,117
  10,600
  11,109
  11,644
  12,208
  12,800
  13,423
Variable operating expenses, $m
 
  3,443
  3,521
  3,610
  3,709
  3,817
  3,936
  4,065
  4,203
  4,353
  4,512
  4,410
  4,592
  4,786
  4,991
  5,208
  5,439
  5,682
  5,940
  6,212
  6,499
  6,802
  7,121
  7,458
  7,812
  8,185
  8,578
  8,991
  9,426
  9,884
  10,365
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
  3,252
  3,443
  3,521
  3,610
  3,709
  3,817
  3,936
  4,065
  4,203
  4,353
  4,512
  4,410
  4,592
  4,786
  4,991
  5,208
  5,439
  5,682
  5,940
  6,212
  6,499
  6,802
  7,121
  7,458
  7,812
  8,185
  8,578
  8,991
  9,426
  9,884
  10,365
Operating income, $m
  765
  663
  686
  712
  741
  773
  808
  846
  887
  931
  979
  1,301
  1,355
  1,412
  1,473
  1,537
  1,605
  1,677
  1,753
  1,833
  1,918
  2,007
  2,101
  2,200
  2,305
  2,415
  2,531
  2,653
  2,781
  2,916
  3,058
EBITDA, $m
  1,418
  1,358
  1,392
  1,430
  1,472
  1,519
  1,570
  1,625
  1,684
  1,748
  1,816
  1,890
  1,967
  2,050
  2,138
  2,231
  2,330
  2,435
  2,545
  2,661
  2,784
  2,914
  3,051
  3,195
  3,347
  3,507
  3,675
  3,852
  4,039
  4,235
  4,441
Interest expense (income), $m
  309
  302
  288
  298
  310
  323
  337
  353
  370
  388
  407
  428
  451
  475
  500
  527
  555
  586
  618
  652
  687
  725
  765
  807
  851
  897
  946
  998
  1,052
  1,109
  1,169
Earnings before tax, $m
  367
  361
  398
  414
  432
  451
  471
  494
  518
  544
  571
  873
  904
  937
  973
  1,010
  1,049
  1,091
  1,135
  1,181
  1,230
  1,282
  1,336
  1,394
  1,454
  1,518
  1,585
  1,655
  1,729
  1,807
  1,889
Tax expense, $m
  118
  97
  108
  112
  117
  122
  127
  133
  140
  147
  154
  236
  244
  253
  263
  273
  283
  295
  306
  319
  332
  346
  361
  376
  393
  410
  428
  447
  467
  488
  510
Net income, $m
  195
  263
  291
  302
  315
  329
  344
  360
  378
  397
  417
  637
  660
  684
  710
  737
  766
  796
  829
  862
  898
  936
  976
  1,018
  1,062
  1,108
  1,157
  1,208
  1,262
  1,319
  1,379

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  22
  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
  9,262
  9,438
  9,672
  9,936
  10,230
  10,553
  10,907
  11,290
  11,703
  12,147
  12,623
  13,131
  13,672
  14,247
  14,858
  15,506
  16,192
  16,917
  17,684
  18,494
  19,349
  20,250
  21,201
  22,203
  23,258
  24,368
  25,538
  26,769
  28,063
  29,426
  30,858
Adjusted assets (=assets-cash), $m
  9,240
  9,438
  9,672
  9,936
  10,230
  10,553
  10,907
  11,290
  11,703
  12,147
  12,623
  13,131
  13,672
  14,247
  14,858
  15,506
  16,192
  16,917
  17,684
  18,494
  19,349
  20,250
  21,201
  22,203
  23,258
  24,368
  25,538
  26,769
  28,063
  29,426
  30,858
Revenue / Adjusted assets
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
Average production assets, $m
  4,716
  4,820
  4,939
  5,074
  5,224
  5,390
  5,570
  5,766
  5,977
  6,203
  6,446
  6,706
  6,982
  7,276
  7,588
  7,919
  8,269
  8,640
  9,031
  9,445
  9,881
  10,342
  10,827
  11,339
  11,877
  12,445
  13,042
  13,670
  14,332
  15,027
  15,759
Working capital, $m
  -430
  -390
  -400
  -411
  -423
  -436
  -451
  -467
  -484
  -502
  -522
  -543
  -565
  -589
  -614
  -641
  -669
  -699
  -731
  -764
  -800
  -837
  -876
  -918
  -961
  -1,007
  -1,055
  -1,106
  -1,160
  -1,216
  -1,275
Total debt, $m
  6,188
  5,875
  6,086
  6,323
  6,588
  6,879
  7,197
  7,542
  7,914
  8,313
  8,741
  9,199
  9,686
  10,203
  10,753
  11,336
  11,954
  12,607
  13,297
  14,026
  14,795
  15,606
  16,462
  17,363
  18,313
  19,313
  20,365
  21,473
  22,638
  23,864
  25,153
Total liabilities, $m
  8,807
  8,494
  8,705
  8,942
  9,207
  9,498
  9,816
  10,161
  10,533
  10,932
  11,360
  11,818
  12,305
  12,822
  13,372
  13,955
  14,573
  15,226
  15,916
  16,645
  17,414
  18,225
  19,081
  19,982
  20,932
  21,932
  22,984
  24,092
  25,257
  26,483
  27,772
Total equity, $m
  455
  944
  967
  994
  1,023
  1,055
  1,091
  1,129
  1,170
  1,215
  1,262
  1,313
  1,367
  1,425
  1,486
  1,551
  1,619
  1,692
  1,768
  1,849
  1,935
  2,025
  2,120
  2,220
  2,326
  2,437
  2,554
  2,677
  2,806
  2,943
  3,086
Total liabilities and equity, $m
  9,262
  9,438
  9,672
  9,936
  10,230
  10,553
  10,907
  11,290
  11,703
  12,147
  12,622
  13,131
  13,672
  14,247
  14,858
  15,506
  16,192
  16,918
  17,684
  18,494
  19,349
  20,250
  21,201
  22,202
  23,258
  24,369
  25,538
  26,769
  28,063
  29,426
  30,858
Debt-to-equity ratio
  13.600
  6.220
  6.290
  6.360
  6.440
  6.520
  6.600
  6.680
  6.760
  6.840
  6.930
  7.010
  7.080
  7.160
  7.240
  7.310
  7.380
  7.450
  7.520
  7.580
  7.650
  7.710
  7.760
  7.820
  7.870
  7.930
  7.970
  8.020
  8.070
  8.110
  8.150
Adjusted equity ratio
  0.049
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  195
  263
  291
  302
  315
  329
  344
  360
  378
  397
  417
  637
  660
  684
  710
  737
  766
  796
  829
  862
  898
  936
  976
  1,018
  1,062
  1,108
  1,157
  1,208
  1,262
  1,319
  1,379
Depreciation, amort., depletion, $m
  653
  695
  706
  718
  731
  745
  761
  778
  797
  817
  838
  588
  612
  638
  666
  695
  725
  758
  792
  828
  867
  907
  950
  995
  1,042
  1,092
  1,144
  1,199
  1,257
  1,318
  1,382
Funds from operations, $m
  1,236
  959
  996
  1,020
  1,046
  1,074
  1,105
  1,139
  1,175
  1,213
  1,255
  1,226
  1,273
  1,323
  1,376
  1,432
  1,491
  1,554
  1,621
  1,691
  1,765
  1,843
  1,925
  2,012
  2,103
  2,200
  2,301
  2,407
  2,519
  2,637
  2,761
Change in working capital, $m
  123
  -8
  -10
  -11
  -12
  -13
  -15
  -16
  -17
  -18
  -20
  -21
  -22
  -24
  -25
  -27
  -28
  -30
  -32
  -33
  -35
  -37
  -39
  -41
  -44
  -46
  -48
  -51
  -54
  -56
  -59
Cash from operations, $m
  1,113
  967
  1,006
  1,031
  1,058
  1,088
  1,120
  1,155
  1,192
  1,232
  1,275
  1,247
  1,295
  1,346
  1,401
  1,459
  1,520
  1,584
  1,652
  1,724
  1,800
  1,880
  1,965
  2,054
  2,147
  2,246
  2,349
  2,458
  2,573
  2,694
  2,821
Maintenance CAPEX, $m
  0
  -414
  -423
  -433
  -445
  -458
  -473
  -489
  -506
  -524
  -544
  -565
  -588
  -612
  -638
  -666
  -695
  -725
  -758
  -792
  -828
  -867
  -907
  -950
  -995
  -1,042
  -1,092
  -1,144
  -1,199
  -1,257
  -1,318
New CAPEX, $m
  -848
  -104
  -120
  -135
  -150
  -165
  -180
  -196
  -211
  -227
  -243
  -259
  -276
  -294
  -312
  -331
  -350
  -371
  -392
  -414
  -437
  -460
  -485
  -512
  -539
  -567
  -597
  -629
  -661
  -696
  -732
Cash from investing activities, $m
  -947
  -518
  -543
  -568
  -595
  -623
  -653
  -685
  -717
  -751
  -787
  -824
  -864
  -906
  -950
  -997
  -1,045
  -1,096
  -1,150
  -1,206
  -1,265
  -1,327
  -1,392
  -1,462
  -1,534
  -1,609
  -1,689
  -1,773
  -1,860
  -1,953
  -2,050
Free cash flow, $m
  166
  450
  464
  463
  463
  464
  467
  470
  475
  481
  488
  422
  430
  440
  451
  462
  475
  488
  503
  519
  535
  553
  572
  592
  614
  636
  660
  686
  713
  741
  771
Issuance/(repayment) of debt, $m
  -100
  -291
  211
  238
  265
  291
  318
  345
  372
  400
  428
  457
  487
  518
  550
  583
  617
  653
  690
  729
  769
  811
  855
  901
  950
  1,000
  1,052
  1,108
  1,165
  1,226
  1,289
Issuance/(repurchase) of shares, $m
  -23
  225
  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  
  -141
  -66
  211
  238
  265
  291
  318
  345
  372
  400
  428
  457
  487
  518
  550
  583
  617
  653
  690
  729
  769
  811
  855
  901
  950
  1,000
  1,052
  1,108
  1,165
  1,226
  1,289
Total cash flow (excl. dividends), $m
  25
  384
  674
  700
  727
  755
  785
  815
  847
  880
  916
  879
  917
  958
  1,000
  1,045
  1,092
  1,141
  1,193
  1,247
  1,305
  1,365
  1,428
  1,494
  1,563
  1,636
  1,713
  1,793
  1,878
  1,967
  2,060
Retained Cash Flow (-), $m
  -156
  -489
  -23
  -26
  -29
  -32
  -35
  -38
  -41
  -44
  -48
  -51
  -54
  -58
  -61
  -65
  -69
  -73
  -77
  -81
  -85
  -90
  -95
  -100
  -106
  -111
  -117
  -123
  -129
  -136
  -143
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
 
  -105
  651
  674
  698
  723
  749
  777
  806
  836
  868
  828
  863
  900
  939
  980
  1,023
  1,069
  1,116
  1,166
  1,219
  1,274
  1,332
  1,394
  1,458
  1,525
  1,596
  1,670
  1,748
  1,831
  1,917
Discount rate, %
 
  12.90
  13.55
  14.22
  14.93
  15.68
  16.46
  17.29
  18.15
  19.06
  20.01
  21.01
  22.06
  23.17
  24.32
  25.54
  26.82
  28.16
  29.57
  31.05
  32.60
  34.23
  35.94
  37.74
  39.62
  41.60
  43.68
  45.87
  48.16
  50.57
  53.10
PV of cash for distribution, $m
 
  -93
  505
  452
  400
  349
  300
  254
  212
  174
  140
  102
  79
  60
  45
  32
  23
  16
  11
  7
  4
  3
  2
  1
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3

Quebecor Inc. operates in telecommunications, media, and sports and entertainment businesses in Canada. The company’s Telecommunications segment offers high-speed Internet access, mobile television (TV), and other mobile telephony services; analog and digital cable TV services, such as video on demand, pay-per-view, and pay TV; and cable telephony and over-the-top video services. This segment is also involved in the provision of telephony, high-speed data transmission, hosting, and cable TV services; and retail sale and rental of DVDs, Blu-ray discs, and console games. As of December 31, 2015, it had 5,647,500 subscribers to cable television and Internet access, over-the-top video, and cable and mobile telephony services. The company’s Media segment operates French-language private television network, as well as specialty channels; offers commercial production, dubbing, custom publishing, and pre-media services; and distributes audiovisual products. It also publishes magazines, school books, and general literature; operates Websites, such as tvanouvelles.ca, tvasports.ca, canadianliving.com, recettes.qc.ca, canoe.ca, micasa.ca, and autonet.ca; and provides soundstage and equipment leasing, post-production, and visual effects services to film and television industries, as well as news agency and talent collective services. In addition, this segment engages in the operation of paid-circulation daily newspapers; printing newspapers; the distribution of newspapers, magazines, books, CDs and videos, and music; out-of-home advertising, and music recording and video production activities; and recording live concerts. Its Sports and Entertainment segment produces and coproduces shows; rents arena; owns and operates hockey teams; manages sports and cultural events; and produces concert videos and television commercials. The company was founded in 1965 and is headquartered in Montreal, Canada. Quebecor Inc. is a subsidiary of Les Placements Peladeau, Inc.

FINANCIAL RATIOS  of  Quebecor Inc. Class B Subordinate Voting (QBR-B)

Valuation Ratios
P/E Ratio 25.7
Price to Sales 1.2
Price to Book 11
Price to Tangible Book
Price to Cash Flow 4.5
Price to Free Cash Flow 18.9
Growth Rates
Sales Growth Rate 3.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -18.4%
Cap. Spend. - 3 Yr. Gr. Rate 5.8%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 1344.4%
Total Debt to Equity 1360%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.4%
Ret/ On Assets - 3 Yr. Avg. 3.1%
Return On Total Capital 2.9%
Ret/ On T. Cap. - 3 Yr. Avg. 1.6%
Return On Equity 51.7%
Return On Equity - 3 Yr. Avg. 28%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 72.5%
Gross Margin - 3 Yr. Avg. 67.7%
EBITDA Margin 33.1%
EBITDA Margin - 3 Yr. Avg. 32.7%
Operating Margin 19%
Oper. Margin - 3 Yr. Avg. 17.2%
Pre-Tax Margin 9.1%
Pre-Tax Margin - 3 Yr. Avg. 7%
Net Profit Margin 4.9%
Net Profit Margin - 3 Yr. Avg. 2.6%
Effective Tax Rate 32.2%
Eff/ Tax Rate - 3 Yr. Avg. 42.3%
Payout Ratio 10.8%

QBR-B stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the QBR-B stock intrinsic value calculation we used $4017 million for the last fiscal year's total revenue generated by Quebecor Inc. Class B Subordinate Voting. The default revenue input number comes from 2016 income statement of Quebecor Inc. Class B Subordinate Voting. 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 QBR-B stock valuation model: a) initial revenue growth rate of 2.2% 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 12.9%, whose default value for QBR-B is calculated based on our internal credit rating of Quebecor Inc. Class B Subordinate Voting, 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 Quebecor Inc. Class B Subordinate Voting.
    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 QBR-B stock the variable cost ratio is equal to 84%.

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 QBR-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 4.9% for Quebecor Inc. Class B Subordinate Voting.

Corporate tax rate of 27% is the nominal tax rate for Quebecor Inc. Class B Subordinate Voting. 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 QBR-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 QBR-B are equal to 117.4%.

Life of production assets of 11.4 years is the average useful life of capital assets used in Quebecor Inc. Class B Subordinate Voting 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 QBR-B is equal to -9.5%. 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 - $455 million for Quebecor Inc. Class B Subordinate Voting - 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 120.74 million for Quebecor Inc. Class B Subordinate Voting 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 Quebecor Inc. Class B Subordinate Voting at the current share price and the inputted number of shares is $5.0 billion.

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Stock chart of QBR-B Financial statements of QBR-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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