Intrinsic value of Shaw Communications Inc. Class B Non-vot - SJR-B

Previous Close

$27.61

  Intrinsic Value

$14.43

stock screener

  Rating & Target

sell

-48%

  Value-price divergence*

0%

Previous close

$27.61

 
Intrinsic value

$14.43

 
Up/down potential

-48%

 
Rating

sell

 
Value-price divergence*

0%

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

We calculate the intrinsic value of SJR-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 13.7

 

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, %
  8.87
  2.80
  3.02
  3.22
  3.40
  3.56
  3.70
  3.83
  3.95
  4.05
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
Revenue, $m
  4,884
  5,021
  5,172
  5,339
  5,520
  5,716
  5,928
  6,155
  6,398
  6,657
  6,934
  7,227
  7,539
  7,869
  8,218
  8,588
  8,978
  9,390
  9,825
  10,284
  10,768
  11,277
  11,814
  12,379
  12,974
  13,600
  14,259
  14,951
  15,680
  16,446
  17,251
Variable operating expenses, $m
 
  3,772
  3,882
  4,003
  4,134
  4,276
  4,430
  4,594
  4,771
  4,959
  5,159
  5,240
  5,466
  5,705
  5,959
  6,227
  6,510
  6,809
  7,124
  7,457
  7,808
  8,177
  8,566
  8,976
  9,407
  9,861
  10,339
  10,841
  11,369
  11,924
  12,508
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
  3,788
  3,772
  3,882
  4,003
  4,134
  4,276
  4,430
  4,594
  4,771
  4,959
  5,159
  5,240
  5,466
  5,705
  5,959
  6,227
  6,510
  6,809
  7,124
  7,457
  7,808
  8,177
  8,566
  8,976
  9,407
  9,861
  10,339
  10,841
  11,369
  11,924
  12,508
Operating income, $m
  1,096
  1,249
  1,291
  1,336
  1,386
  1,440
  1,498
  1,561
  1,627
  1,699
  1,775
  1,987
  2,073
  2,163
  2,259
  2,361
  2,468
  2,582
  2,701
  2,827
  2,960
  3,100
  3,248
  3,403
  3,567
  3,739
  3,920
  4,110
  4,311
  4,521
  4,743
EBITDA, $m
  2,058
  2,204
  2,271
  2,344
  2,423
  2,510
  2,602
  2,702
  2,809
  2,923
  3,044
  3,173
  3,309
  3,454
  3,608
  3,770
  3,941
  4,122
  4,313
  4,515
  4,727
  4,951
  5,187
  5,435
  5,696
  5,971
  6,260
  6,564
  6,884
  7,220
  7,573
Interest expense (income), $m
  306
  281
  296
  311
  328
  347
  367
  389
  412
  437
  464
  492
  522
  554
  588
  624
  662
  702
  744
  789
  836
  886
  938
  993
  1,051
  1,112
  1,177
  1,244
  1,316
  1,390
  1,469
Earnings before tax, $m
  627
  968
  995
  1,025
  1,058
  1,093
  1,131
  1,172
  1,215
  1,262
  1,311
  1,495
  1,550
  1,609
  1,671
  1,737
  1,806
  1,880
  1,957
  2,038
  2,124
  2,215
  2,310
  2,410
  2,516
  2,627
  2,743
  2,866
  2,995
  3,131
  3,274
Tax expense, $m
  171
  261
  269
  277
  286
  295
  305
  316
  328
  341
  354
  404
  419
  434
  451
  469
  488
  507
  528
  550
  574
  598
  624
  651
  679
  709
  741
  774
  809
  845
  884
Net income, $m
  1,220
  706
  726
  748
  772
  798
  826
  855
  887
  921
  957
  1,091
  1,132
  1,175
  1,220
  1,268
  1,319
  1,372
  1,428
  1,488
  1,551
  1,617
  1,686
  1,759
  1,836
  1,917
  2,003
  2,092
  2,186
  2,286
  2,390

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  405
  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
  15,382
  15,401
  15,866
  16,377
  16,933
  17,535
  18,184
  18,881
  19,626
  20,422
  21,269
  22,169
  23,124
  24,137
  25,209
  26,342
  27,540
  28,805
  30,139
  31,547
  33,030
  34,593
  36,240
  37,973
  39,798
  41,718
  43,738
  45,863
  48,097
  50,447
  52,917
Adjusted assets (=assets-cash), $m
  14,977
  15,401
  15,866
  16,377
  16,933
  17,535
  18,184
  18,881
  19,626
  20,422
  21,269
  22,169
  23,124
  24,137
  25,209
  26,342
  27,540
  28,805
  30,139
  31,547
  33,030
  34,593
  36,240
  37,973
  39,798
  41,718
  43,738
  45,863
  48,097
  50,447
  52,917
Revenue / Adjusted assets
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
Average production assets, $m
  7,455
  7,662
  7,893
  8,147
  8,424
  8,723
  9,046
  9,393
  9,764
  10,159
  10,581
  11,028
  11,504
  12,007
  12,541
  13,105
  13,700
  14,330
  14,994
  15,694
  16,432
  17,209
  18,028
  18,891
  19,799
  20,754
  21,759
  22,816
  23,927
  25,096
  26,325
Working capital, $m
  -943
  -964
  -993
  -1,025
  -1,060
  -1,098
  -1,138
  -1,182
  -1,228
  -1,278
  -1,331
  -1,388
  -1,447
  -1,511
  -1,578
  -1,649
  -1,724
  -1,803
  -1,886
  -1,975
  -2,067
  -2,165
  -2,268
  -2,377
  -2,491
  -2,611
  -2,738
  -2,871
  -3,011
  -3,158
  -3,312
Total debt, $m
  5,612
  5,476
  5,764
  6,081
  6,425
  6,799
  7,201
  7,633
  8,095
  8,588
  9,114
  9,672
  10,264
  10,892
  11,556
  12,259
  13,002
  13,786
  14,613
  15,486
  16,406
  17,375
  18,396
  19,470
  20,602
  21,792
  23,045
  24,362
  25,747
  27,204
  28,735
Total liabilities, $m
  9,685
  9,549
  9,837
  10,154
  10,498
  10,872
  11,274
  11,706
  12,168
  12,661
  13,187
  13,745
  14,337
  14,965
  15,629
  16,332
  17,075
  17,859
  18,686
  19,559
  20,479
  21,448
  22,469
  23,543
  24,675
  25,865
  27,118
  28,435
  29,820
  31,277
  32,808
Total equity, $m
  5,697
  5,852
  6,029
  6,223
  6,435
  6,663
  6,910
  7,175
  7,458
  7,760
  8,082
  8,424
  8,787
  9,172
  9,579
  10,010
  10,465
  10,946
  11,453
  11,988
  12,552
  13,146
  13,771
  14,430
  15,123
  15,853
  16,620
  17,428
  18,277
  19,170
  20,108
Total liabilities and equity, $m
  15,382
  15,401
  15,866
  16,377
  16,933
  17,535
  18,184
  18,881
  19,626
  20,421
  21,269
  22,169
  23,124
  24,137
  25,208
  26,342
  27,540
  28,805
  30,139
  31,547
  33,031
  34,594
  36,240
  37,973
  39,798
  41,718
  43,738
  45,863
  48,097
  50,447
  52,916
Debt-to-equity ratio
  0.985
  0.940
  0.960
  0.980
  1.000
  1.020
  1.040
  1.060
  1.090
  1.110
  1.130
  1.150
  1.170
  1.190
  1.210
  1.220
  1.240
  1.260
  1.280
  1.290
  1.310
  1.320
  1.340
  1.350
  1.360
  1.370
  1.390
  1.400
  1.410
  1.420
  1.430
Adjusted equity ratio
  0.353
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380
  0.380

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,220
  706
  726
  748
  772
  798
  826
  855
  887
  921
  957
  1,091
  1,132
  1,175
  1,220
  1,268
  1,319
  1,372
  1,428
  1,488
  1,551
  1,617
  1,686
  1,759
  1,836
  1,917
  2,003
  2,092
  2,186
  2,286
  2,390
Depreciation, amort., depletion, $m
  962
  955
  980
  1,008
  1,037
  1,069
  1,104
  1,141
  1,181
  1,224
  1,269
  1,186
  1,237
  1,291
  1,348
  1,409
  1,473
  1,541
  1,612
  1,687
  1,767
  1,850
  1,939
  2,031
  2,129
  2,232
  2,340
  2,453
  2,573
  2,698
  2,831
Funds from operations, $m
  1,735
  1,662
  1,706
  1,756
  1,809
  1,867
  1,930
  1,997
  2,069
  2,145
  2,226
  2,277
  2,369
  2,466
  2,568
  2,677
  2,792
  2,913
  3,041
  3,175
  3,317
  3,467
  3,625
  3,791
  3,965
  4,149
  4,342
  4,546
  4,759
  4,984
  5,220
Change in working capital, $m
  72
  -26
  -29
  -32
  -35
  -38
  -41
  -44
  -47
  -50
  -53
  -56
  -60
  -63
  -67
  -71
  -75
  -79
  -84
  -88
  -93
  -98
  -103
  -109
  -114
  -120
  -126
  -133
  -140
  -147
  -155
Cash from operations, $m
  1,663
  1,688
  1,736
  1,788
  1,844
  1,905
  1,971
  2,041
  2,115
  2,195
  2,279
  2,333
  2,428
  2,529
  2,636
  2,748
  2,867
  2,992
  3,124
  3,264
  3,410
  3,565
  3,728
  3,899
  4,079
  4,269
  4,469
  4,679
  4,899
  5,131
  5,375
Maintenance CAPEX, $m
  0
  -802
  -824
  -849
  -876
  -906
  -938
  -973
  -1,010
  -1,050
  -1,092
  -1,138
  -1,186
  -1,237
  -1,291
  -1,348
  -1,409
  -1,473
  -1,541
  -1,612
  -1,687
  -1,767
  -1,850
  -1,939
  -2,031
  -2,129
  -2,232
  -2,340
  -2,453
  -2,573
  -2,698
New CAPEX, $m
  -1,198
  -207
  -231
  -254
  -277
  -300
  -323
  -347
  -371
  -396
  -421
  -448
  -475
  -504
  -533
  -564
  -596
  -629
  -664
  -700
  -738
  -778
  -819
  -862
  -908
  -955
  -1,005
  -1,057
  -1,112
  -1,169
  -1,229
Cash from investing activities, $m
  -1,227
  -1,009
  -1,055
  -1,103
  -1,153
  -1,206
  -1,261
  -1,320
  -1,381
  -1,446
  -1,513
  -1,586
  -1,661
  -1,741
  -1,824
  -1,912
  -2,005
  -2,102
  -2,205
  -2,312
  -2,425
  -2,545
  -2,669
  -2,801
  -2,939
  -3,084
  -3,237
  -3,397
  -3,565
  -3,742
  -3,927
Free cash flow, $m
  436
  679
  680
  685
  692
  700
  710
  721
  734
  749
  765
  748
  767
  788
  811
  836
  862
  890
  919
  951
  985
  1,020
  1,058
  1,098
  1,140
  1,185
  1,232
  1,282
  1,334
  1,390
  1,448
Issuance/(repayment) of debt, $m
  -51
  269
  288
  317
  345
  373
  402
  432
  462
  493
  525
  558
  592
  628
  665
  703
  743
  784
  827
  873
  920
  969
  1,021
  1,075
  1,131
  1,190
  1,252
  1,317
  1,385
  1,457
  1,531
Issuance/(repurchase) of shares, $m
  38
  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  
  -36
  269
  288
  317
  345
  373
  402
  432
  462
  493
  525
  558
  592
  628
  665
  703
  743
  784
  827
  873
  920
  969
  1,021
  1,075
  1,131
  1,190
  1,252
  1,317
  1,385
  1,457
  1,531
Total cash flow (excl. dividends), $m
  400
  948
  969
  1,002
  1,036
  1,073
  1,112
  1,153
  1,197
  1,242
  1,291
  1,306
  1,360
  1,416
  1,476
  1,538
  1,604
  1,674
  1,747
  1,824
  1,905
  1,990
  2,079
  2,173
  2,272
  2,375
  2,485
  2,599
  2,720
  2,846
  2,979
Retained Cash Flow (-), $m
  -885
  -155
  -177
  -194
  -211
  -229
  -247
  -265
  -283
  -302
  -322
  -342
  -363
  -385
  -407
  -431
  -455
  -481
  -507
  -535
  -564
  -594
  -626
  -659
  -693
  -730
  -768
  -807
  -849
  -893
  -939
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
 
  793
  792
  808
  825
  844
  865
  888
  913
  940
  969
  964
  997
  1,031
  1,068
  1,108
  1,149
  1,193
  1,240
  1,289
  1,341
  1,396
  1,453
  1,514
  1,578
  1,646
  1,717
  1,792
  1,871
  1,953
  2,041
Discount rate, %
 
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for distribution, $m
 
  741
  689
  648
  607
  564
  522
  478
  435
  392
  350
  299
  261
  226
  193
  162
  135
  110
  88
  70
  54
  41
  30
  22
  16
  11
  7
  5
  3
  2
  1
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

Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.

FINANCIAL RATIOS  of  Shaw Communications Inc. Class B Non-vot (SJR-B)

Valuation Ratios
P/E Ratio 11
Price to Sales 2.7
Price to Book 2.4
Price to Tangible Book
Price to Cash Flow 8.1
Price to Free Cash Flow 28.9
Growth Rates
Sales Growth Rate 8.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 12%
Cap. Spend. - 3 Yr. Gr. Rate 3.6%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 91.3%
Total Debt to Equity 98.5%
Interest Coverage 3
Management Effectiveness
Return On Assets 9.6%
Ret/ On Assets - 3 Yr. Avg. 8.5%
Return On Total Capital 11.2%
Ret/ On T. Cap. - 3 Yr. Avg. 9.7%
Return On Equity 23.2%
Return On Equity - 3 Yr. Avg. 20.2%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 43.3%
Gross Margin - 3 Yr. Avg. 44%
EBITDA Margin 38.8%
EBITDA Margin - 3 Yr. Avg. 42.3%
Operating Margin 22.4%
Oper. Margin - 3 Yr. Avg. 24.9%
Pre-Tax Margin 12.8%
Pre-Tax Margin - 3 Yr. Avg. 18.4%
Net Profit Margin 25%
Net Profit Margin - 3 Yr. Avg. 20.1%
Effective Tax Rate 27.3%
Eff/ Tax Rate - 3 Yr. Avg. 25.9%
Payout Ratio 32.2%

SJR-B stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SJR-B stock intrinsic value calculation we used $4884 million for the last fiscal year's total revenue generated by Shaw Communications Inc. Class B Non-vot. The default revenue input number comes from 2016 income statement of Shaw Communications Inc. Class B Non-vot. 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 SJR-B stock valuation model: a) initial revenue growth rate of 2.8% 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 6.9%, whose default value for SJR-B is calculated based on our internal credit rating of Shaw Communications Inc. Class B Non-vot, 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 Shaw Communications Inc. Class B Non-vot.
    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 SJR-B stock the variable cost ratio is equal to 75.2%.

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 SJR-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 5.4% for Shaw Communications Inc. Class B Non-vot.

Corporate tax rate of 27% is the nominal tax rate for Shaw Communications Inc. Class B Non-vot. 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 SJR-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 SJR-B are equal to 152.6%.

Life of production assets of 9.3 years is the average useful life of capital assets used in Shaw Communications Inc. Class B Non-vot 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 SJR-B is equal to -19.2%. 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 - $5697 million for Shaw Communications Inc. Class B Non-vot - 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 496.559 million for Shaw Communications Inc. Class B Non-vot 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 Shaw Communications Inc. Class B Non-vot at the current share price and the inputted number of shares is $13.7 billion.

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Financial statements of SJR-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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