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

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$41.18

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$41.18

 
Intrinsic value

$25.30

 
Up/down potential

-39%

 
Rating

sell

 
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 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
  2.50
  2.75
  2.97
  3.18
  3.36
  3.52
  3.67
  3.80
  3.92
  4.03
  4.13
  4.22
  4.29
  4.36
  4.43
  4.49
  4.54
  4.58
  4.62
  4.66
  4.70
  4.73
  4.75
  4.78
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
Revenue, $m
  4,017
  4,117
  4,231
  4,357
  4,495
  4,646
  4,810
  4,986
  5,176
  5,379
  5,596
  5,827
  6,073
  6,333
  6,610
  6,902
  7,212
  7,539
  7,885
  8,249
  8,634
  9,039
  9,467
  9,917
  10,391
  10,889
  11,414
  11,967
  12,547
  13,158
  13,801
Variable operating expenses, $m
 
  3,452
  3,539
  3,636
  3,743
  3,860
  3,986
  4,123
  4,269
  4,426
  4,593
  4,499
  4,689
  4,890
  5,104
  5,330
  5,569
  5,821
  6,088
  6,370
  6,667
  6,980
  7,310
  7,657
  8,023
  8,408
  8,814
  9,240
  9,689
  10,160
  10,657
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
  3,452
  3,539
  3,636
  3,743
  3,860
  3,986
  4,123
  4,269
  4,426
  4,593
  4,499
  4,689
  4,890
  5,104
  5,330
  5,569
  5,821
  6,088
  6,370
  6,667
  6,980
  7,310
  7,657
  8,023
  8,408
  8,814
  9,240
  9,689
  10,160
  10,657
Operating income, $m
  765
  666
  691
  720
  752
  786
  823
  864
  907
  953
  1,002
  1,328
  1,384
  1,443
  1,506
  1,573
  1,643
  1,718
  1,796
  1,880
  1,967
  2,060
  2,157
  2,259
  2,367
  2,481
  2,601
  2,726
  2,859
  2,998
  3,144
EBITDA, $m
  1,418
  1,362
  1,400
  1,441
  1,487
  1,537
  1,591
  1,650
  1,712
  1,779
  1,851
  1,928
  2,009
  2,095
  2,187
  2,283
  2,386
  2,494
  2,608
  2,729
  2,856
  2,990
  3,132
  3,281
  3,437
  3,602
  3,776
  3,959
  4,151
  4,353
  4,566
Interest expense (income), $m
  309
  302
  289
  301
  313
  327
  343
  359
  377
  396
  417
  439
  462
  487
  514
  542
  571
  603
  636
  671
  708
  747
  788
  831
  877
  925
  976
  1,029
  1,085
  1,144
  1,206
Earnings before tax, $m
  367
  363
  402
  420
  438
  459
  481
  504
  530
  557
  585
  889
  921
  956
  992
  1,031
  1,072
  1,115
  1,160
  1,208
  1,259
  1,313
  1,369
  1,428
  1,490
  1,556
  1,625
  1,698
  1,774
  1,854
  1,939
Tax expense, $m
  118
  98
  109
  113
  118
  124
  130
  136
  143
  150
  158
  240
  249
  258
  268
  278
  289
  301
  313
  326
  340
  354
  370
  386
  402
  420
  439
  458
  479
  501
  523
Net income, $m
  195
  265
  294
  306
  320
  335
  351
  368
  387
  406
  427
  649
  672
  698
  724
  753
  782
  814
  847
  882
  919
  958
  999
  1,042
  1,088
  1,136
  1,186
  1,239
  1,295
  1,354
  1,415

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
  9,465
  9,726
  10,015
  10,333
  10,680
  11,057
  11,463
  11,899
  12,366
  12,864
  13,395
  13,960
  14,559
  15,195
  15,868
  16,579
  17,331
  18,126
  18,964
  19,848
  20,780
  21,762
  22,797
  23,886
  25,033
  26,240
  27,509
  28,845
  30,249
  31,726
Adjusted assets (=assets-cash), $m
  9,240
  9,465
  9,726
  10,015
  10,333
  10,680
  11,057
  11,463
  11,899
  12,366
  12,864
  13,395
  13,960
  14,559
  15,195
  15,868
  16,579
  17,331
  18,126
  18,964
  19,848
  20,780
  21,762
  22,797
  23,886
  25,033
  26,240
  27,509
  28,845
  30,249
  31,726
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
  4,834
  4,967
  5,115
  5,277
  5,454
  5,647
  5,854
  6,077
  6,315
  6,570
  6,841
  7,129
  7,435
  7,760
  8,103
  8,467
  8,851
  9,257
  9,685
  10,136
  10,612
  11,114
  11,642
  12,199
  12,784
  13,400
  14,049
  14,731
  15,448
  16,202
Working capital, $m
  -430
  -391
  -402
  -414
  -427
  -441
  -457
  -474
  -492
  -511
  -532
  -554
  -577
  -602
  -628
  -656
  -685
  -716
  -749
  -784
  -820
  -859
  -899
  -942
  -987
  -1,034
  -1,084
  -1,137
  -1,192
  -1,250
  -1,311
Total debt, $m
  6,188
  5,900
  6,134
  6,394
  6,681
  6,993
  7,332
  7,697
  8,090
  8,510
  8,959
  9,437
  9,945
  10,484
  11,056
  11,662
  12,302
  12,979
  13,694
  14,449
  15,244
  16,083
  16,967
  17,898
  18,879
  19,911
  20,997
  22,139
  23,341
  24,605
  25,935
Total liabilities, $m
  8,807
  8,519
  8,753
  9,013
  9,300
  9,612
  9,951
  10,316
  10,709
  11,129
  11,578
  12,056
  12,564
  13,103
  13,675
  14,281
  14,921
  15,598
  16,313
  17,068
  17,863
  18,702
  19,586
  20,517
  21,498
  22,530
  23,616
  24,758
  25,960
  27,224
  28,554
Total equity, $m
  455
  947
  973
  1,001
  1,033
  1,068
  1,106
  1,146
  1,190
  1,237
  1,286
  1,340
  1,396
  1,456
  1,519
  1,587
  1,658
  1,733
  1,813
  1,896
  1,985
  2,078
  2,176
  2,280
  2,389
  2,503
  2,624
  2,751
  2,884
  3,025
  3,173
Total liabilities and equity, $m
  9,262
  9,466
  9,726
  10,014
  10,333
  10,680
  11,057
  11,462
  11,899
  12,366
  12,864
  13,396
  13,960
  14,559
  15,194
  15,868
  16,579
  17,331
  18,126
  18,964
  19,848
  20,780
  21,762
  22,797
  23,887
  25,033
  26,240
  27,509
  28,844
  30,249
  31,727
Debt-to-equity ratio
  13.600
  6.230
  6.310
  6.380
  6.470
  6.550
  6.630
  6.720
  6.800
  6.880
  6.960
  7.040
  7.120
  7.200
  7.280
  7.350
  7.420
  7.490
  7.560
  7.620
  7.680
  7.740
  7.800
  7.850
  7.900
  7.950
  8.000
  8.050
  8.090
  8.130
  8.170
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
  265
  294
  306
  320
  335
  351
  368
  387
  406
  427
  649
  672
  698
  724
  753
  782
  814
  847
  882
  919
  958
  999
  1,042
  1,088
  1,136
  1,186
  1,239
  1,295
  1,354
  1,415
Depreciation, amort., depletion, $m
  653
  697
  708
  721
  735
  751
  768
  786
  806
  826
  849
  600
  625
  652
  681
  711
  743
  776
  812
  850
  889
  931
  975
  1,021
  1,070
  1,121
  1,175
  1,232
  1,292
  1,355
  1,421
Funds from operations, $m
  1,236
  962
  1,002
  1,027
  1,055
  1,086
  1,119
  1,154
  1,192
  1,233
  1,276
  1,249
  1,298
  1,350
  1,405
  1,463
  1,525
  1,590
  1,659
  1,732
  1,808
  1,889
  1,974
  2,064
  2,158
  2,257
  2,362
  2,472
  2,587
  2,709
  2,836
Change in working capital, $m
  123
  -10
  -11
  -12
  -13
  -14
  -16
  -17
  -18
  -19
  -21
  -22
  -23
  -25
  -26
  -28
  -29
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -45
  -47
  -50
  -52
  -55
  -58
  -61
Cash from operations, $m
  1,113
  1,084
  1,013
  1,039
  1,068
  1,100
  1,134
  1,171
  1,210
  1,252
  1,297
  1,271
  1,321
  1,375
  1,431
  1,491
  1,554
  1,621
  1,692
  1,766
  1,845
  1,928
  2,015
  2,106
  2,203
  2,305
  2,412
  2,524
  2,642
  2,767
  2,898
Maintenance CAPEX, $m
  0
  -414
  -424
  -436
  -449
  -463
  -478
  -495
  -513
  -533
  -554
  -576
  -600
  -625
  -652
  -681
  -711
  -743
  -776
  -812
  -850
  -889
  -931
  -975
  -1,021
  -1,070
  -1,121
  -1,175
  -1,232
  -1,292
  -1,355
New CAPEX, $m
  -848
  -118
  -133
  -148
  -163
  -177
  -192
  -207
  -223
  -238
  -255
  -271
  -288
  -306
  -325
  -344
  -363
  -384
  -406
  -428
  -452
  -476
  -502
  -528
  -556
  -586
  -616
  -648
  -682
  -717
  -754
Cash from investing activities, $m
  -947
  -532
  -557
  -584
  -612
  -640
  -670
  -702
  -736
  -771
  -809
  -847
  -888
  -931
  -977
  -1,025
  -1,074
  -1,127
  -1,182
  -1,240
  -1,302
  -1,365
  -1,433
  -1,503
  -1,577
  -1,656
  -1,737
  -1,823
  -1,914
  -2,009
  -2,109
Free cash flow, $m
  166
  553
  456
  456
  457
  460
  464
  468
  474
  481
  488
  423
  433
  443
  455
  467
  480
  495
  510
  526
  544
  562
  582
  603
  625
  649
  674
  700
  728
  757
  788
Issuance/(repayment) of debt, $m
  -100
  -266
  234
  260
  286
  312
  339
  365
  392
  420
  449
  478
  508
  539
  572
  606
  641
  677
  715
  754
  796
  839
  884
  931
  980
  1,032
  1,086
  1,143
  1,202
  1,264
  1,329
Issuance/(repurchase) of shares, $m
  -23
  205
  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
  -61
  234
  260
  286
  312
  339
  365
  392
  420
  449
  478
  508
  539
  572
  606
  641
  677
  715
  754
  796
  839
  884
  931
  980
  1,032
  1,086
  1,143
  1,202
  1,264
  1,329
Total cash flow (excl. dividends), $m
  25
  287
  690
  716
  744
  772
  802
  834
  866
  901
  937
  901
  941
  983
  1,026
  1,072
  1,121
  1,171
  1,225
  1,281
  1,340
  1,401
  1,466
  1,534
  1,606
  1,681
  1,760
  1,843
  1,930
  2,021
  2,117
Retained Cash Flow (-), $m
  -156
  -492
  -26
  -29
  -32
  -35
  -38
  -41
  -44
  -47
  -50
  -53
  -56
  -60
  -64
  -67
  -71
  -75
  -79
  -84
  -88
  -93
  -98
  -103
  -109
  -115
  -121
  -127
  -134
  -140
  -148
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
 
  0
  664
  687
  712
  738
  765
  793
  823
  854
  887
  848
  884
  923
  963
  1,005
  1,050
  1,096
  1,145
  1,197
  1,251
  1,308
  1,368
  1,431
  1,497
  1,566
  1,639
  1,716
  1,796
  1,881
  1,970
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
 
  0
  515
  461
  408
  356
  306
  260
  217
  178
  143
  104
  81
  61
  46
  33
  23
  16
  11
  7
  4
  3
  2
  1
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7

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 2.5% 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 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 122.429 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
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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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