Intrinsic value of TransAlta Corporation - TA

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$6.95

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$6.95

 
Intrinsic value

$7.99

 
Up/down potential

+15%

 
Rating

hold

 
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 TA 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 2.0

 

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, %
  5.73
  20.50
  18.95
  17.56
  16.30
  15.17
  14.15
  13.24
  12.41
  11.67
  11.01
  10.40
  9.86
  9.38
  8.94
  8.55
  8.19
  7.87
  7.58
  7.33
  7.09
  6.88
  6.70
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
Revenue, $m
  2,397
  2,888
  3,436
  4,039
  4,697
  5,410
  6,175
  6,993
  7,861
  8,778
  9,744
  10,758
  11,820
  12,928
  14,084
  15,287
  16,539
  17,842
  19,195
  20,601
  22,062
  23,581
  25,160
  26,802
  28,511
  30,289
  32,140
  34,069
  36,080
  38,176
  40,364
Variable operating expenses, $m
 
  2,691
  3,192
  3,745
  4,347
  5,000
  5,701
  6,449
  7,244
  8,084
  8,969
  9,851
  10,822
  11,837
  12,896
  13,998
  15,144
  16,336
  17,576
  18,863
  20,201
  21,592
  23,038
  24,541
  26,106
  27,734
  29,429
  31,195
  33,036
  34,956
  36,959
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
  1,919
  2,691
  3,192
  3,745
  4,347
  5,000
  5,701
  6,449
  7,244
  8,084
  8,969
  9,851
  10,822
  11,837
  12,896
  13,998
  15,144
  16,336
  17,576
  18,863
  20,201
  21,592
  23,038
  24,541
  26,106
  27,734
  29,429
  31,195
  33,036
  34,956
  36,959
Operating income, $m
  478
  197
  243
  294
  350
  410
  475
  543
  617
  694
  776
  908
  997
  1,091
  1,188
  1,290
  1,395
  1,505
  1,619
  1,738
  1,861
  1,989
  2,122
  2,261
  2,405
  2,555
  2,711
  2,874
  3,044
  3,220
  3,405
EBITDA, $m
  1,142
  653
  776
  913
  1,061
  1,222
  1,395
  1,580
  1,776
  1,984
  2,202
  2,431
  2,671
  2,921
  3,182
  3,454
  3,737
  4,031
  4,337
  4,655
  4,985
  5,328
  5,685
  6,056
  6,442
  6,844
  7,262
  7,698
  8,152
  8,626
  9,121
Interest expense (income), $m
  235
  212
  290
  377
  472
  576
  688
  809
  938
  1,075
  1,220
  1,372
  1,532
  1,700
  1,875
  2,057
  2,247
  2,445
  2,650
  2,864
  3,086
  3,316
  3,556
  3,805
  4,064
  4,334
  4,615
  4,907
  5,211
  5,529
  5,860
Earnings before tax, $m
  314
  -15
  -47
  -82
  -122
  -166
  -214
  -266
  -321
  -381
  -444
  -465
  -535
  -609
  -687
  -768
  -852
  -940
  -1,031
  -1,126
  -1,225
  -1,327
  -1,434
  -1,544
  -1,659
  -1,779
  -1,903
  -2,033
  -2,168
  -2,308
  -2,455
Tax expense, $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
Net income, $m
  169
  -15
  -47
  -82
  -122
  -166
  -214
  -266
  -321
  -381
  -444
  -465
  -535
  -609
  -687
  -768
  -852
  -940
  -1,031
  -1,126
  -1,225
  -1,327
  -1,434
  -1,544
  -1,659
  -1,779
  -1,903
  -2,033
  -2,168
  -2,308
  -2,455

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  362
  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
  10,996
  12,837
  15,270
  17,951
  20,876
  24,043
  27,446
  31,079
  34,937
  39,015
  43,309
  47,815
  52,531
  57,458
  62,594
  67,943
  73,509
  79,296
  85,310
  91,560
  98,055
  104,806
  111,824
  119,122
  126,714
  134,617
  142,846
  151,418
  160,354
  169,673
  179,395
Adjusted assets (=assets-cash), $m
  10,634
  12,837
  15,270
  17,951
  20,876
  24,043
  27,446
  31,079
  34,937
  39,015
  43,309
  47,815
  52,531
  57,458
  62,594
  67,943
  73,509
  79,296
  85,310
  91,560
  98,055
  104,806
  111,824
  119,122
  126,714
  134,617
  142,846
  151,418
  160,354
  169,673
  179,395
Revenue / Adjusted assets
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
Average production assets, $m
  1,696
  2,045
  2,432
  2,860
  3,326
  3,830
  4,372
  4,951
  5,565
  6,215
  6,899
  7,617
  8,368
  9,153
  9,971
  10,823
  11,710
  12,632
  13,590
  14,586
  15,620
  16,696
  17,814
  18,976
  20,186
  21,444
  22,755
  24,121
  25,544
  27,029
  28,578
Working capital, $m
  337
  739
  880
  1,034
  1,202
  1,385
  1,581
  1,790
  2,012
  2,247
  2,495
  2,754
  3,026
  3,310
  3,605
  3,914
  4,234
  4,567
  4,914
  5,274
  5,648
  6,037
  6,441
  6,861
  7,299
  7,754
  8,228
  8,722
  9,236
  9,773
  10,333
Total debt, $m
  4,361
  5,477
  7,107
  8,903
  10,863
  12,985
  15,265
  17,699
  20,284
  23,016
  25,893
  28,912
  32,072
  35,373
  38,814
  42,398
  46,127
  50,004
  54,034
  58,221
  62,573
  67,096
  71,798
  76,688
  81,775
  87,069
  92,583
  98,326
  104,313
  110,557
  117,071
Total liabilities, $m
  7,485
  8,601
  10,231
  12,027
  13,987
  16,109
  18,389
  20,823
  23,408
  26,140
  29,017
  32,036
  35,196
  38,497
  41,938
  45,522
  49,251
  53,128
  57,158
  61,345
  65,697
  70,220
  74,922
  79,812
  84,899
  90,193
  95,707
  101,450
  107,437
  113,681
  120,195
Total equity, $m
  3,511
  4,236
  5,039
  5,924
  6,889
  7,934
  9,057
  10,256
  11,529
  12,875
  14,292
  15,779
  17,335
  18,961
  20,656
  22,421
  24,258
  26,168
  28,152
  30,215
  32,358
  34,586
  36,902
  39,310
  41,816
  44,424
  47,139
  49,968
  52,917
  55,992
  59,200
Total liabilities and equity, $m
  10,996
  12,837
  15,270
  17,951
  20,876
  24,043
  27,446
  31,079
  34,937
  39,015
  43,309
  47,815
  52,531
  57,458
  62,594
  67,943
  73,509
  79,296
  85,310
  91,560
  98,055
  104,806
  111,824
  119,122
  126,715
  134,617
  142,846
  151,418
  160,354
  169,673
  179,395
Debt-to-equity ratio
  1.242
  1.290
  1.410
  1.500
  1.580
  1.640
  1.690
  1.730
  1.760
  1.790
  1.810
  1.830
  1.850
  1.870
  1.880
  1.890
  1.900
  1.910
  1.920
  1.930
  1.930
  1.940
  1.950
  1.950
  1.960
  1.960
  1.960
  1.970
  1.970
  1.970
  1.980
Adjusted equity ratio
  0.296
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  169
  -15
  -47
  -82
  -122
  -166
  -214
  -266
  -321
  -381
  -444
  -465
  -535
  -609
  -687
  -768
  -852
  -940
  -1,031
  -1,126
  -1,225
  -1,327
  -1,434
  -1,544
  -1,659
  -1,779
  -1,903
  -2,033
  -2,168
  -2,308
  -2,455
Depreciation, amort., depletion, $m
  664
  455
  533
  618
  712
  812
  921
  1,037
  1,159
  1,289
  1,426
  1,523
  1,674
  1,831
  1,994
  2,165
  2,342
  2,526
  2,718
  2,917
  3,124
  3,339
  3,563
  3,795
  4,037
  4,289
  4,551
  4,824
  5,109
  5,406
  5,716
Funds from operations, $m
  817
  441
  486
  536
  590
  647
  707
  771
  838
  908
  982
  1,059
  1,138
  1,221
  1,308
  1,397
  1,490
  1,587
  1,687
  1,791
  1,899
  2,012
  2,129
  2,251
  2,378
  2,510
  2,648
  2,791
  2,941
  3,098
  3,261
Change in working capital, $m
  73
  126
  140
  154
  169
  182
  196
  209
  222
  235
  247
  260
  272
  284
  296
  308
  321
  333
  346
  360
  374
  389
  404
  420
  437
  455
  474
  494
  515
  537
  560
Cash from operations, $m
  744
  346
  346
  382
  421
  464
  511
  562
  616
  674
  735
  799
  867
  938
  1,012
  1,089
  1,170
  1,253
  1,341
  1,431
  1,525
  1,623
  1,725
  1,831
  1,940
  2,055
  2,174
  2,298
  2,426
  2,561
  2,701
Maintenance CAPEX, $m
  0
  -339
  -409
  -486
  -572
  -665
  -766
  -874
  -990
  -1,113
  -1,243
  -1,380
  -1,523
  -1,674
  -1,831
  -1,994
  -2,165
  -2,342
  -2,526
  -2,718
  -2,917
  -3,124
  -3,339
  -3,563
  -3,795
  -4,037
  -4,289
  -4,551
  -4,824
  -5,109
  -5,406
New CAPEX, $m
  -379
  -349
  -388
  -427
  -466
  -504
  -542
  -579
  -615
  -650
  -684
  -718
  -751
  -785
  -818
  -852
  -887
  -922
  -958
  -996
  -1,035
  -1,075
  -1,118
  -1,163
  -1,209
  -1,259
  -1,311
  -1,366
  -1,423
  -1,484
  -1,549
Cash from investing activities, $m
  -327
  -688
  -797
  -913
  -1,038
  -1,169
  -1,308
  -1,453
  -1,605
  -1,763
  -1,927
  -2,098
  -2,274
  -2,459
  -2,649
  -2,846
  -3,052
  -3,264
  -3,484
  -3,714
  -3,952
  -4,199
  -4,457
  -4,726
  -5,004
  -5,296
  -5,600
  -5,917
  -6,247
  -6,593
  -6,955
Free cash flow, $m
  417
  -342
  -451
  -532
  -617
  -705
  -797
  -891
  -989
  -1,089
  -1,192
  -1,299
  -1,408
  -1,521
  -1,637
  -1,757
  -1,882
  -2,010
  -2,144
  -2,282
  -2,426
  -2,576
  -2,732
  -2,895
  -3,064
  -3,241
  -3,426
  -3,619
  -3,821
  -4,032
  -4,254
Issuance/(repayment) of debt, $m
  -58
  1,478
  1,630
  1,796
  1,960
  2,122
  2,280
  2,434
  2,585
  2,732
  2,877
  3,019
  3,160
  3,301
  3,442
  3,584
  3,729
  3,877
  4,030
  4,188
  4,352
  4,523
  4,702
  4,890
  5,087
  5,295
  5,513
  5,744
  5,987
  6,243
  6,514
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  43
  99
  157
  218
  281
  346
  413
  483
  554
  628
  704
  783
  864
  948
Cash from financing (excl. dividends), $m  
  -52
  1,478
  1,630
  1,796
  1,960
  2,122
  2,280
  2,434
  2,585
  2,732
  2,877
  3,019
  3,160
  3,301
  3,442
  3,584
  3,729
  3,920
  4,129
  4,345
  4,570
  4,804
  5,048
  5,303
  5,570
  5,849
  6,141
  6,448
  6,770
  7,107
  7,462
Total cash flow (excl. dividends), $m
  362
  1,136
  1,179
  1,264
  1,343
  1,416
  1,483
  1,543
  1,596
  1,643
  1,684
  1,720
  1,752
  1,780
  1,804
  1,827
  1,847
  1,867
  1,886
  1,905
  1,925
  1,947
  1,970
  1,995
  2,023
  2,053
  2,087
  2,125
  2,166
  2,211
  2,260
Retained Cash Flow (-), $m
  -150
  -725
  -803
  -885
  -966
  -1,045
  -1,123
  -1,199
  -1,273
  -1,346
  -1,417
  -1,487
  -1,556
  -1,626
  -1,695
  -1,765
  -1,837
  -1,910
  -1,985
  -2,063
  -2,143
  -2,228
  -2,316
  -2,408
  -2,506
  -2,608
  -2,715
  -2,829
  -2,949
  -3,075
  -3,208
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
 
  410
  377
  379
  378
  371
  360
  344
  323
  297
  268
  233
  196
  154
  109
  61
  11
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
 
  379
  319
  292
  262
  230
  197
  164
  133
  105
  80
  58
  40
  25
  14
  6
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
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
  99.7
  99.2
  98.4
  97.4
  96.2
  94.9
  93.4
  91.8
  90.1
  88.3
  86.4
  84.5
  82.6
  80.7

TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. The company operates through Canadian Coal, U.S. Coal, Gas, Wind and Solar, Hydro, and Energy Marketing segments. It engages in generating and marketing electricity through various generation facilities. The company has an aggregate net ownership interest of approximately 8,184 megawatts of generating capacity TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.

FINANCIAL RATIOS  of  TransAlta Corporation (TA)

Valuation Ratios
P/E Ratio 11.8
Price to Sales 0.8
Price to Book 0.6
Price to Tangible Book
Price to Cash Flow 2.7
Price to Free Cash Flow 5.5
Growth Rates
Sales Growth Rate 5.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -24.5%
Cap. Spend. - 3 Yr. Gr. Rate -9.1%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 106%
Total Debt to Equity 124.2%
Interest Coverage 2
Management Effectiveness
Return On Assets 3.4%
Ret/ On Assets - 3 Yr. Avg. 3%
Return On Total Capital 2.1%
Ret/ On T. Cap. - 3 Yr. Avg. 1.6%
Return On Equity 4.9%
Return On Equity - 3 Yr. Avg. 3.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 50.6%
EBITDA Margin - 3 Yr. Avg. 46.1%
Operating Margin 19.9%
Oper. Margin - 3 Yr. Avg. 14.4%
Pre-Tax Margin 13.1%
Pre-Tax Margin - 3 Yr. Avg. 10.7%
Net Profit Margin 7.1%
Net Profit Margin - 3 Yr. Avg. 5%
Effective Tax Rate 12.1%
Eff/ Tax Rate - 3 Yr. Avg. 20.8%
Payout Ratio 65.7%

TA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TA stock intrinsic value calculation we used $2397 million for the last fiscal year's total revenue generated by TransAlta Corporation. The default revenue input number comes from 2016 income statement of TransAlta Corporation. 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 TA stock valuation model: a) initial revenue growth rate of 20.5% 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 8.3%, whose default value for TA is calculated based on our internal credit rating of TransAlta Corporation, 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 TransAlta Corporation.
    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 TA stock the variable cost ratio is equal to 93.5%.

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 TA 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 5.3% for TransAlta Corporation.

Corporate tax rate of 27% is the nominal tax rate for TransAlta Corporation. 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 TA 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 TA are equal to 70.8%.

Life of production assets of 3.3 years is the average useful life of capital assets used in TransAlta Corporation 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 TA is equal to 25.6%. 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 - $3511 million for TransAlta Corporation - 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 288.336 million for TransAlta Corporation 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 TransAlta Corporation at the current share price and the inputted number of shares is $2.0 billion.


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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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