Intrinsic value of Berry Global Group - BERY

Previous Close

$59.50

  Intrinsic Value

$34.44

stock screener

  Rating & Target

sell

-42%

  Value-price divergence*

-109%

Previous close

$59.50

 
Intrinsic value

$34.44

 
Up/down potential

-42%

 
Rating

sell

 
Value-price divergence*

-109%

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

We calculate the intrinsic value of BERY 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 7.8

 

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, %
  32.94
  15.90
  14.81
  13.83
  12.95
  12.15
  11.44
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
Revenue, $m
  6,489
  7,521
  8,635
  9,829
  11,101
  12,450
  13,874
  15,371
  16,941
  18,583
  20,297
  22,083
  23,943
  25,877
  27,888
  29,978
  32,149
  34,406
  36,752
  39,191
  41,727
  44,367
  47,114
  49,975
  52,957
  56,065
  59,307
  62,690
  66,222
  69,911
  73,766
Variable operating expenses, $m
 
  6,249
  7,139
  8,093
  9,109
  10,187
  11,325
  12,521
  13,775
  15,087
  16,456
  17,643
  19,128
  20,674
  22,280
  23,950
  25,685
  27,488
  29,362
  31,310
  33,337
  35,445
  37,640
  39,926
  42,309
  44,792
  47,382
  50,085
  52,906
  55,853
  58,933
Fixed operating expenses, $m
 
  508
  521
  534
  547
  561
  575
  590
  604
  619
  635
  651
  667
  684
  701
  718
  736
  755
  774
  793
  813
  833
  854
  875
  897
  920
  943
  966
  990
  1,015
  1,040
Total operating expenses, $m
  5,912
  6,757
  7,660
  8,627
  9,656
  10,748
  11,900
  13,111
  14,379
  15,706
  17,091
  18,294
  19,795
  21,358
  22,981
  24,668
  26,421
  28,243
  30,136
  32,103
  34,150
  36,278
  38,494
  40,801
  43,206
  45,712
  48,325
  51,051
  53,896
  56,868
  59,973
Operating income, $m
  577
  763
  975
  1,202
  1,444
  1,702
  1,974
  2,261
  2,562
  2,877
  3,206
  3,790
  4,147
  4,520
  4,907
  5,309
  5,728
  6,164
  6,616
  7,087
  7,578
  8,088
  8,620
  9,174
  9,751
  10,354
  10,983
  11,640
  12,326
  13,043
  13,792
EBITDA, $m
  1,102
  1,352
  1,615
  1,898
  2,199
  2,519
  2,857
  3,213
  3,587
  3,978
  4,387
  4,813
  5,257
  5,719
  6,199
  6,698
  7,218
  7,758
  8,319
  8,903
  9,511
  10,144
  10,803
  11,489
  12,205
  12,952
  13,731
  14,544
  15,394
  16,282
  17,210
Interest expense (income), $m
  0
  200
  209
  249
  291
  336
  384
  435
  488
  544
  603
  664
  727
  793
  862
  934
  1,008
  1,085
  1,166
  1,249
  1,336
  1,426
  1,520
  1,618
  1,720
  1,826
  1,937
  2,052
  2,173
  2,298
  2,430
Earnings before tax, $m
  308
  563
  766
  953
  1,153
  1,365
  1,590
  1,826
  2,073
  2,332
  2,603
  3,126
  3,420
  3,726
  4,045
  4,376
  4,720
  5,078
  5,451
  5,838
  6,242
  6,662
  7,099
  7,556
  8,031
  8,528
  9,046
  9,587
  10,153
  10,744
  11,363
Tax expense, $m
  72
  152
  207
  257
  311
  369
  429
  493
  560
  630
  703
  844
  923
  1,006
  1,092
  1,181
  1,274
  1,371
  1,472
  1,576
  1,685
  1,799
  1,917
  2,040
  2,168
  2,303
  2,442
  2,589
  2,741
  2,901
  3,068
Net income, $m
  236
  411
  559
  696
  842
  997
  1,160
  1,333
  1,513
  1,703
  1,900
  2,282
  2,497
  2,720
  2,953
  3,194
  3,446
  3,707
  3,979
  4,262
  4,556
  4,863
  5,183
  5,516
  5,863
  6,225
  6,604
  6,999
  7,412
  7,843
  8,295

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  323
  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
  7,653
  8,498
  9,757
  11,106
  12,544
  14,068
  15,677
  17,369
  19,143
  20,998
  22,934
  24,953
  27,054
  29,240
  31,512
  33,873
  36,327
  38,877
  41,527
  44,283
  47,149
  50,132
  53,236
  56,469
  59,838
  63,351
  67,014
  70,837
  74,827
  78,996
  83,351
Adjusted assets (=assets-cash), $m
  7,330
  8,498
  9,757
  11,106
  12,544
  14,068
  15,677
  17,369
  19,143
  20,998
  22,934
  24,953
  27,054
  29,240
  31,512
  33,873
  36,327
  38,877
  41,527
  44,283
  47,149
  50,132
  53,236
  56,469
  59,838
  63,351
  67,014
  70,837
  74,827
  78,996
  83,351
Revenue / Adjusted assets
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
  0.885
Average production assets, $m
  2,706
  3,136
  3,601
  4,099
  4,629
  5,192
  5,785
  6,410
  7,064
  7,749
  8,464
  9,209
  9,984
  10,791
  11,629
  12,501
  13,406
  14,347
  15,325
  16,342
  17,400
  18,501
  19,647
  20,840
  22,083
  23,379
  24,731
  26,142
  27,615
  29,153
  30,760
Working capital, $m
  761
  557
  639
  727
  821
  921
  1,027
  1,137
  1,254
  1,375
  1,502
  1,634
  1,772
  1,915
  2,064
  2,218
  2,379
  2,546
  2,720
  2,900
  3,088
  3,283
  3,486
  3,698
  3,919
  4,149
  4,389
  4,639
  4,900
  5,173
  5,459
Total debt, $m
  5,755
  5,968
  7,101
  8,315
  9,609
  10,981
  12,429
  13,952
  15,548
  17,218
  18,961
  20,778
  22,669
  24,636
  26,680
  28,806
  31,014
  33,309
  35,695
  38,175
  40,754
  43,439
  46,233
  49,142
  52,175
  55,336
  58,632
  62,073
  65,665
  69,416
  73,336
Total liabilities, $m
  7,435
  7,648
  8,781
  9,995
  11,289
  12,661
  14,109
  15,632
  17,228
  18,898
  20,641
  22,458
  24,349
  26,316
  28,360
  30,486
  32,694
  34,989
  37,375
  39,855
  42,434
  45,119
  47,913
  50,822
  53,855
  57,016
  60,312
  63,753
  67,345
  71,096
  75,016
Total equity, $m
  218
  850
  976
  1,111
  1,254
  1,407
  1,568
  1,737
  1,914
  2,100
  2,293
  2,495
  2,705
  2,924
  3,151
  3,387
  3,633
  3,888
  4,153
  4,428
  4,715
  5,013
  5,324
  5,647
  5,984
  6,335
  6,701
  7,084
  7,483
  7,900
  8,335
Total liabilities and equity, $m
  7,653
  8,498
  9,757
  11,106
  12,543
  14,068
  15,677
  17,369
  19,142
  20,998
  22,934
  24,953
  27,054
  29,240
  31,511
  33,873
  36,327
  38,877
  41,528
  44,283
  47,149
  50,132
  53,237
  56,469
  59,839
  63,351
  67,013
  70,837
  74,828
  78,996
  83,351
Debt-to-equity ratio
  26.399
  7.020
  7.280
  7.490
  7.660
  7.810
  7.930
  8.030
  8.120
  8.200
  8.270
  8.330
  8.380
  8.430
  8.470
  8.500
  8.540
  8.570
  8.600
  8.620
  8.640
  8.660
  8.680
  8.700
  8.720
  8.730
  8.750
  8.760
  8.780
  8.790
  8.800
Adjusted equity ratio
  -0.014
  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
  236
  411
  559
  696
  842
  997
  1,160
  1,333
  1,513
  1,703
  1,900
  2,282
  2,497
  2,720
  2,953
  3,194
  3,446
  3,707
  3,979
  4,262
  4,556
  4,863
  5,183
  5,516
  5,863
  6,225
  6,604
  6,999
  7,412
  7,843
  8,295
Depreciation, amort., depletion, $m
  525
  589
  641
  696
  755
  817
  883
  953
  1,026
  1,102
  1,181
  1,023
  1,109
  1,199
  1,292
  1,389
  1,490
  1,594
  1,703
  1,816
  1,933
  2,056
  2,183
  2,316
  2,454
  2,598
  2,748
  2,905
  3,068
  3,239
  3,418
Funds from operations, $m
  902
  1,000
  1,200
  1,392
  1,597
  1,814
  2,044
  2,285
  2,539
  2,804
  3,081
  3,305
  3,606
  3,919
  4,245
  4,583
  4,935
  5,301
  5,682
  6,078
  6,490
  6,919
  7,365
  7,831
  8,317
  8,823
  9,352
  9,903
  10,480
  11,083
  11,713
Change in working capital, $m
  45
  76
  82
  88
  94
  100
  105
  111
  116
  122
  127
  132
  138
  143
  149
  155
  161
  167
  174
  180
  188
  195
  203
  212
  221
  230
  240
  250
  261
  273
  285
Cash from operations, $m
  857
  924
  1,117
  1,303
  1,503
  1,714
  1,938
  2,175
  2,423
  2,683
  2,954
  3,173
  3,468
  3,776
  4,096
  4,429
  4,774
  5,134
  5,508
  5,897
  6,302
  6,723
  7,162
  7,619
  8,096
  8,593
  9,112
  9,653
  10,219
  10,810
  11,427
Maintenance CAPEX, $m
  0
  -301
  -348
  -400
  -455
  -514
  -577
  -643
  -712
  -785
  -861
  -940
  -1,023
  -1,109
  -1,199
  -1,292
  -1,389
  -1,490
  -1,594
  -1,703
  -1,816
  -1,933
  -2,056
  -2,183
  -2,316
  -2,454
  -2,598
  -2,748
  -2,905
  -3,068
  -3,239
New CAPEX, $m
  -288
  -431
  -464
  -498
  -531
  -563
  -594
  -624
  -655
  -685
  -715
  -745
  -775
  -807
  -839
  -871
  -906
  -941
  -978
  -1,017
  -1,058
  -1,101
  -1,146
  -1,193
  -1,243
  -1,296
  -1,352
  -1,411
  -1,473
  -1,538
  -1,607
Cash from investing activities, $m
  -2,579
  -732
  -812
  -898
  -986
  -1,077
  -1,171
  -1,267
  -1,367
  -1,470
  -1,576
  -1,685
  -1,798
  -1,916
  -2,038
  -2,163
  -2,295
  -2,431
  -2,572
  -2,720
  -2,874
  -3,034
  -3,202
  -3,376
  -3,559
  -3,750
  -3,950
  -4,159
  -4,378
  -4,606
  -4,846
Free cash flow, $m
  -1,722
  193
  304
  405
  517
  637
  768
  907
  1,056
  1,213
  1,379
  1,488
  1,670
  1,860
  2,058
  2,265
  2,480
  2,703
  2,936
  3,177
  3,428
  3,689
  3,961
  4,243
  4,537
  4,843
  5,162
  5,494
  5,841
  6,203
  6,581
Issuance/(repayment) of debt, $m
  1,966
  256
  1,133
  1,214
  1,294
  1,372
  1,448
  1,523
  1,597
  1,670
  1,743
  1,817
  1,891
  1,967
  2,045
  2,125
  2,208
  2,295
  2,385
  2,480
  2,580
  2,684
  2,794
  2,910
  3,032
  3,161
  3,297
  3,440
  3,592
  3,751
  3,920
Issuance/(repurchase) of shares, $m
  26
  501
  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  
  1,817
  757
  1,133
  1,214
  1,294
  1,372
  1,448
  1,523
  1,597
  1,670
  1,743
  1,817
  1,891
  1,967
  2,045
  2,125
  2,208
  2,295
  2,385
  2,480
  2,580
  2,684
  2,794
  2,910
  3,032
  3,161
  3,297
  3,440
  3,592
  3,751
  3,920
Total cash flow (excl. dividends), $m
  95
  949
  1,437
  1,620
  1,811
  2,009
  2,216
  2,430
  2,653
  2,883
  3,122
  3,304
  3,561
  3,827
  4,103
  4,390
  4,688
  4,999
  5,321
  5,658
  6,008
  6,373
  6,755
  7,153
  7,569
  8,004
  8,459
  8,935
  9,433
  9,954
  10,501
Retained Cash Flow (-), $m
  -286
  -912
  -126
  -135
  -144
  -152
  -161
  -169
  -177
  -186
  -194
  -202
  -210
  -219
  -227
  -236
  -245
  -255
  -265
  -276
  -287
  -298
  -310
  -323
  -337
  -351
  -366
  -382
  -399
  -417
  -436
Prev. year cash balance distribution, $m
 
  280
  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
 
  318
  1,311
  1,485
  1,667
  1,857
  2,055
  2,261
  2,475
  2,697
  2,928
  3,102
  3,351
  3,608
  3,876
  4,154
  4,443
  4,744
  5,056
  5,382
  5,721
  6,075
  6,444
  6,830
  7,232
  7,653
  8,093
  8,553
  9,034
  9,538
  10,065
Discount rate, %
 
  12.80
  13.44
  14.11
  14.82
  15.56
  16.34
  17.15
  18.01
  18.91
  19.86
  20.85
  21.89
  22.99
  24.14
  25.34
  26.61
  27.94
  29.34
  30.80
  32.34
  33.96
  35.66
  37.44
  39.32
  41.28
  43.35
  45.51
  47.79
  50.18
  52.69
PV of cash for distribution, $m
 
  282
  1,019
  999
  959
  901
  829
  746
  658
  567
  479
  386
  311
  245
  188
  140
  102
  72
  49
  33
  21
  13
  8
  5
  3
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Berry Global Group, Inc., formerly Berry Plastics Group, Inc., is a provider of value-added plastic consumer packaging, non-woven specialty materials and engineered materials. The Company offers products, such as closures, prescription vials, specialty films, adhesives, nonwovens, drink cups, containers and bottles. The Company operates through three segments: Health, Hygiene & Specialties, Consumer Packaging, and Engineered Materials. The Consumer Packaging segment primarily consists of containers, foodservice items, closures, overcaps, bottles, prescription vials, tubes, and printed films. The Health, Hygiene & Specialties segment primarily consists of non-woven specialty materials used in hygiene, infection prevention, personal care, industrial, construction, and filtration applications. The Engineered Materials segment primarily consists of pipeline corrosion protection solutions, tapes and adhesives, polyethylene-based film products, and specialty coated and laminated products.

FINANCIAL RATIOS  of  Berry Global Group (BERY)

Valuation Ratios
P/E Ratio 30.8
Price to Sales 1.1
Price to Book 33.3
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow 12.8
Growth Rates
Sales Growth Rate 32.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 60%
Cap. Spend. - 3 Yr. Gr. Rate 3.8%
Financial Strength
Quick Ratio 8
Current Ratio 0
LT Debt to Equity 2620.2%
Total Debt to Equity 2639.9%
Interest Coverage 0
Management Effectiveness
Return On Assets 3.7%
Ret/ On Assets - 3 Yr. Avg. 2.2%
Return On Total Capital 4.9%
Ret/ On T. Cap. - 3 Yr. Avg. 3%
Return On Equity 314.7%
Return On Equity - 3 Yr. Avg. 60.8%
Asset Turnover 1
Profitability Ratios
Gross Margin 19.8%
Gross Margin - 3 Yr. Avg. 17.7%
EBITDA Margin 12.8%
EBITDA Margin - 3 Yr. Avg. 10.4%
Operating Margin 8.9%
Oper. Margin - 3 Yr. Avg. 7%
Pre-Tax Margin 4.7%
Pre-Tax Margin - 3 Yr. Avg. 2.9%
Net Profit Margin 3.6%
Net Profit Margin - 3 Yr. Avg. 2.2%
Effective Tax Rate 23.4%
Eff/ Tax Rate - 3 Yr. Avg. 19.6%
Payout Ratio 0%

BERY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BERY stock intrinsic value calculation we used $6489 million for the last fiscal year's total revenue generated by Berry Global Group. The default revenue input number comes from 2016 income statement of Berry Global Group. 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 BERY stock valuation model: a) initial revenue growth rate of 15.9% 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 12.8%, whose default value for BERY is calculated based on our internal credit rating of Berry Global Group, 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 Berry Global Group.
    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 BERY stock the variable cost ratio is equal to 83.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $496 million in the base year in the intrinsic value calculation for BERY 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 Berry Global Group.

Corporate tax rate of 27% is the nominal tax rate for Berry Global Group. 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 BERY 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 BERY are equal to 41.7%.

Life of production assets of 9 years is the average useful life of capital assets used in Berry Global Group 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 BERY is equal to 7.4%. 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 - $218 million for Berry Global Group - 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 130.931 million for Berry Global Group 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 Berry Global Group at the current share price and the inputted number of shares is $7.8 billion.

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COMPANY NEWS

▶ Berry Plastics Getting Closer To Key Technical Measure   [03:00AM  Investor's Business Daily]
▶ Berry Global beats 3Q profit forecasts   [02:29AM  Associated Press]
▶ Berry Global Group, Inc. Joins the Fortune 500   [Jun-13-17 05:30PM  Business Wire]
▶ Berry Global beats Street 2Q forecasts   [May-03-17 08:41AM  Associated Press]
▶ Berry Plastics Changes Name to Berry Global   [Apr-03-17 04:45PM  Business Wire]
▶ Taking a Look at Berry Plastics   [Mar-27-17 06:12PM  GuruFocus.com]
▶ Berry Plastics beats 1Q profit forecasts   [08:40AM  Associated Press]
▶ Top Mid-Cap Stocks for 2017: Berry Plastics, Crane Co.   [Dec-19-16 08:31AM  at TheStreet]
▶ Is Erie Indemnity Company (ERIE) a Good Stock to Buy?   [Dec-13-16 06:54AM  at Insider Monkey]
Financial statements of BERY
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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