Intrinsic value of Companhia Brasileira de Distribuicao Gru - CBD

Previous Close

$25.10

  Intrinsic Value

$45.74

stock screener

  Rating & Target

str. buy

+82%

  Value-price divergence*

-127%

Previous close

$25.10

 
Intrinsic value

$45.74

 
Up/down potential

+82%

 
Rating

str. buy

 
Value-price divergence*

-127%

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

We calculate the intrinsic value of CBD 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 6.9

 

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, %
  11.44
  9.50
  9.05
  8.64
  8.28
  7.95
  7.66
  7.39
  7.15
  6.94
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.93
  5.83
  5.75
  5.68
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
Revenue, $m
  13,107
  14,352
  15,651
  17,004
  18,412
  19,876
  21,398
  22,980
  24,624
  26,332
  28,107
  29,954
  31,874
  33,873
  35,954
  38,122
  40,381
  42,737
  45,195
  47,760
  50,438
  53,236
  56,160
  59,217
  62,414
  65,759
  69,259
  72,923
  76,760
  80,779
  84,989
Variable operating expenses, $m
 
  13,732
  14,971
  16,262
  17,606
  19,004
  20,456
  21,965
  23,534
  25,164
  26,859
  28,586
  30,419
  32,326
  34,312
  36,381
  38,537
  40,785
  43,131
  45,579
  48,135
  50,805
  53,595
  56,512
  59,563
  62,755
  66,096
  69,593
  73,255
  77,090
  81,108
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
  12,836
  13,732
  14,971
  16,262
  17,606
  19,004
  20,456
  21,965
  23,534
  25,164
  26,859
  28,586
  30,419
  32,326
  34,312
  36,381
  38,537
  40,785
  43,131
  45,579
  48,135
  50,805
  53,595
  56,512
  59,563
  62,755
  66,096
  69,593
  73,255
  77,090
  81,108
Operating income, $m
  271
  620
  680
  742
  806
  873
  942
  1,015
  1,090
  1,168
  1,249
  1,368
  1,456
  1,547
  1,642
  1,741
  1,844
  1,952
  2,064
  2,181
  2,304
  2,431
  2,565
  2,704
  2,850
  3,003
  3,163
  3,330
  3,506
  3,689
  3,881
EBITDA, $m
  615
  986
  1,075
  1,168
  1,265
  1,365
  1,470
  1,579
  1,691
  1,809
  1,931
  2,058
  2,190
  2,327
  2,470
  2,619
  2,774
  2,936
  3,105
  3,281
  3,465
  3,657
  3,858
  4,068
  4,287
  4,517
  4,758
  5,009
  5,273
  5,549
  5,838
Interest expense (income), $m
  0
  32
  66
  102
  139
  177
  217
  259
  302
  347
  394
  442
  493
  545
  600
  657
  716
  778
  843
  910
  980
  1,053
  1,130
  1,210
  1,293
  1,381
  1,472
  1,568
  1,668
  1,773
  1,883
Earnings before tax, $m
  -15
  588
  614
  640
  667
  695
  725
  756
  787
  820
  855
  926
  963
  1,002
  1,042
  1,084
  1,128
  1,174
  1,222
  1,271
  1,324
  1,378
  1,435
  1,495
  1,557
  1,622
  1,691
  1,762
  1,838
  1,916
  1,998
Tax expense, $m
  7
  159
  166
  173
  180
  188
  196
  204
  213
  222
  231
  250
  260
  270
  281
  293
  305
  317
  330
  343
  357
  372
  387
  404
  420
  438
  457
  476
  496
  517
  540
Net income, $m
  -152
  429
  448
  467
  487
  508
  529
  552
  575
  599
  624
  676
  703
  731
  761
  791
  823
  857
  892
  928
  966
  1,006
  1,048
  1,091
  1,137
  1,184
  1,234
  1,287
  1,341
  1,399
  1,459

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,616
  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
  14,296
  13,880
  15,136
  16,445
  17,807
  19,223
  20,695
  22,224
  23,814
  25,466
  27,183
  28,969
  30,826
  32,759
  34,772
  36,869
  39,054
  41,332
  43,709
  46,189
  48,780
  51,486
  54,313
  57,270
  60,362
  63,596
  66,982
  70,525
  74,236
  78,123
  82,195
Adjusted assets (=assets-cash), $m
  12,680
  13,880
  15,136
  16,445
  17,807
  19,223
  20,695
  22,224
  23,814
  25,466
  27,183
  28,969
  30,826
  32,759
  34,772
  36,869
  39,054
  41,332
  43,709
  46,189
  48,780
  51,486
  54,313
  57,270
  60,362
  63,596
  66,982
  70,525
  74,236
  78,123
  82,195
Revenue / Adjusted assets
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
  1.034
Average production assets, $m
  3,894
  4,263
  4,648
  5,050
  5,468
  5,903
  6,355
  6,825
  7,313
  7,821
  8,348
  8,896
  9,467
  10,060
  10,678
  11,322
  11,993
  12,693
  13,423
  14,185
  14,980
  15,811
  16,680
  17,587
  18,537
  19,530
  20,570
  21,658
  22,798
  23,991
  25,242
Working capital, $m
  1,286
  660
  720
  782
  847
  914
  984
  1,057
  1,133
  1,211
  1,293
  1,378
  1,466
  1,558
  1,654
  1,754
  1,858
  1,966
  2,079
  2,197
  2,320
  2,449
  2,583
  2,724
  2,871
  3,025
  3,186
  3,354
  3,531
  3,716
  3,910
Total debt, $m
  1,856
  1,892
  2,907
  3,965
  5,065
  6,209
  7,398
  8,634
  9,919
  11,253
  12,641
  14,084
  15,585
  17,147
  18,773
  20,467
  22,232
  24,073
  25,994
  27,998
  30,091
  32,277
  34,562
  36,951
  39,449
  42,063
  44,798
  47,662
  50,660
  53,800
  57,090
Total liabilities, $m
  11,179
  11,215
  12,230
  13,288
  14,388
  15,532
  16,721
  17,957
  19,242
  20,576
  21,964
  23,407
  24,908
  26,470
  28,096
  29,790
  31,555
  33,396
  35,317
  37,321
  39,414
  41,600
  43,885
  46,274
  48,772
  51,386
  54,121
  56,985
  59,983
  63,123
  66,413
Total equity, $m
  3,117
  2,665
  2,906
  3,157
  3,419
  3,691
  3,973
  4,267
  4,572
  4,889
  5,219
  5,562
  5,919
  6,290
  6,676
  7,079
  7,498
  7,936
  8,392
  8,868
  9,366
  9,885
  10,428
  10,996
  11,589
  12,210
  12,860
  13,541
  14,253
  15,000
  15,781
Total liabilities and equity, $m
  14,296
  13,880
  15,136
  16,445
  17,807
  19,223
  20,694
  22,224
  23,814
  25,465
  27,183
  28,969
  30,827
  32,760
  34,772
  36,869
  39,053
  41,332
  43,709
  46,189
  48,780
  51,485
  54,313
  57,270
  60,361
  63,596
  66,981
  70,526
  74,236
  78,123
  82,194
Debt-to-equity ratio
  0.595
  0.710
  1.000
  1.260
  1.480
  1.680
  1.860
  2.020
  2.170
  2.300
  2.420
  2.530
  2.630
  2.730
  2.810
  2.890
  2.960
  3.030
  3.100
  3.160
  3.210
  3.270
  3.310
  3.360
  3.400
  3.440
  3.480
  3.520
  3.550
  3.590
  3.620
Adjusted equity ratio
  0.118
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -152
  429
  448
  467
  487
  508
  529
  552
  575
  599
  624
  676
  703
  731
  761
  791
  823
  857
  892
  928
  966
  1,006
  1,048
  1,091
  1,137
  1,184
  1,234
  1,287
  1,341
  1,399
  1,459
Depreciation, amort., depletion, $m
  344
  365
  395
  426
  459
  493
  528
  564
  602
  641
  682
  690
  734
  780
  828
  878
  930
  984
  1,041
  1,100
  1,161
  1,226
  1,293
  1,363
  1,437
  1,514
  1,595
  1,679
  1,767
  1,860
  1,957
Funds from operations, $m
  -1,643
  795
  843
  894
  946
  1,000
  1,057
  1,116
  1,177
  1,240
  1,306
  1,365
  1,437
  1,511
  1,588
  1,669
  1,753
  1,841
  1,932
  2,028
  2,127
  2,232
  2,341
  2,455
  2,574
  2,698
  2,829
  2,966
  3,109
  3,259
  3,416
Change in working capital, $m
  -1,231
  57
  60
  62
  65
  67
  70
  73
  76
  79
  82
  85
  88
  92
  96
  100
  104
  108
  113
  118
  123
  129
  135
  141
  147
  154
  161
  169
  177
  185
  194
Cash from operations, $m
  -412
  738
  783
  831
  881
  933
  987
  1,043
  1,101
  1,162
  1,224
  1,280
  1,348
  1,419
  1,493
  1,569
  1,649
  1,732
  1,819
  1,910
  2,004
  2,103
  2,206
  2,314
  2,427
  2,545
  2,668
  2,797
  2,932
  3,074
  3,222
Maintenance CAPEX, $m
  0
  -302
  -330
  -360
  -391
  -424
  -458
  -493
  -529
  -567
  -606
  -647
  -690
  -734
  -780
  -828
  -878
  -930
  -984
  -1,041
  -1,100
  -1,161
  -1,226
  -1,293
  -1,363
  -1,437
  -1,514
  -1,595
  -1,679
  -1,767
  -1,860
New CAPEX, $m
  -488
  -369
  -386
  -402
  -418
  -435
  -452
  -470
  -488
  -507
  -527
  -548
  -570
  -594
  -618
  -644
  -671
  -700
  -730
  -762
  -795
  -831
  -868
  -908
  -950
  -993
  -1,040
  -1,088
  -1,140
  -1,194
  -1,250
Cash from investing activities, $m
  -639
  -671
  -716
  -762
  -809
  -859
  -910
  -963
  -1,017
  -1,074
  -1,133
  -1,195
  -1,260
  -1,328
  -1,398
  -1,472
  -1,549
  -1,630
  -1,714
  -1,803
  -1,895
  -1,992
  -2,094
  -2,201
  -2,313
  -2,430
  -2,554
  -2,683
  -2,819
  -2,961
  -3,110
Free cash flow, $m
  -1,051
  67
  67
  69
  71
  74
  77
  80
  84
  87
  91
  85
  88
  92
  95
  98
  100
  103
  105
  107
  109
  111
  112
  113
  114
  114
  114
  114
  114
  113
  112
Issuance/(repayment) of debt, $m
  491
  971
  1,015
  1,057
  1,100
  1,144
  1,189
  1,236
  1,284
  1,335
  1,388
  1,443
  1,501
  1,562
  1,626
  1,694
  1,765
  1,841
  1,920
  2,004
  2,093
  2,186
  2,285
  2,389
  2,498
  2,614
  2,735
  2,863
  2,998
  3,140
  3,290
Issuance/(repurchase) of shares, $m
  2
  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  
  467
  971
  1,015
  1,057
  1,100
  1,144
  1,189
  1,236
  1,284
  1,335
  1,388
  1,443
  1,501
  1,562
  1,626
  1,694
  1,765
  1,841
  1,920
  2,004
  2,093
  2,186
  2,285
  2,389
  2,498
  2,614
  2,735
  2,863
  2,998
  3,140
  3,290
Total cash flow (excl. dividends), $m
  -591
  1,038
  1,082
  1,126
  1,172
  1,218
  1,267
  1,316
  1,368
  1,422
  1,478
  1,528
  1,589
  1,653
  1,721
  1,792
  1,866
  1,944
  2,026
  2,112
  2,202
  2,297
  2,397
  2,502
  2,612
  2,728
  2,850
  2,978
  3,112
  3,253
  3,402
Retained Cash Flow (-), $m
  157
  -229
  -241
  -251
  -261
  -272
  -283
  -294
  -305
  -317
  -330
  -343
  -357
  -371
  -386
  -403
  -420
  -437
  -456
  -476
  -497
  -520
  -543
  -568
  -594
  -621
  -650
  -680
  -712
  -746
  -782
Prev. year cash balance distribution, $m
 
  681
  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
 
  1,490
  841
  875
  910
  946
  984
  1,023
  1,063
  1,105
  1,149
  1,185
  1,232
  1,282
  1,335
  1,389
  1,446
  1,506
  1,569
  1,635
  1,705
  1,778
  1,854
  1,934
  2,018
  2,107
  2,200
  2,297
  2,400
  2,507
  2,620
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,428
  770
  762
  750
  734
  714
  691
  664
  635
  602
  563
  526
  488
  448
  408
  368
  328
  289
  252
  217
  184
  154
  127
  103
  82
  64
  49
  37
  27
  20
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

Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva. The Company's segments include Retail, and Cash and carry segment. The Company's Retail segment includes the banners Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Supermercado, Minimercado Extra, Posto Extra, Drogaria Extra and GPA Malls & Properties. Its Cash & Carry segment includes the brand Assai. The Company is engaged in operations of retail stores located in approximately 20 states and the Federal District of Brazil.

FINANCIAL RATIOS  of  Companhia Brasileira de Distribuicao Gru (CBD)

Valuation Ratios
P/E Ratio -43.9
Price to Sales 0.5
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow -16.2
Price to Free Cash Flow -7.4
Growth Rates
Sales Growth Rate 11.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -22.3%
Cap. Spend. - 3 Yr. Gr. Rate -3.6%
Financial Strength
Quick Ratio 2
Current Ratio 0.7
LT Debt to Equity 29.5%
Total Debt to Equity 59.5%
Interest Coverage 0
Management Effectiveness
Return On Assets -1%
Ret/ On Assets - 3 Yr. Avg. 0.8%
Return On Total Capital -2.8%
Ret/ On T. Cap. - 3 Yr. Avg. 1.6%
Return On Equity -4.8%
Return On Equity - 3 Yr. Avg. 3.3%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 23%
Gross Margin - 3 Yr. Avg. 24.3%
EBITDA Margin 2.5%
EBITDA Margin - 3 Yr. Avg. 4.2%
Operating Margin 2.1%
Oper. Margin - 3 Yr. Avg. 4.1%
Pre-Tax Margin -0.1%
Pre-Tax Margin - 3 Yr. Avg. 1.9%
Net Profit Margin -1.2%
Net Profit Margin - 3 Yr. Avg. 0.5%
Effective Tax Rate -46.7%
Eff/ Tax Rate - 3 Yr. Avg. 4.1%
Payout Ratio -0.7%

CBD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CBD stock intrinsic value calculation we used $13107 million for the last fiscal year's total revenue generated by Companhia Brasileira de Distribuicao Gru. The default revenue input number comes from 2016 income statement of Companhia Brasileira de Distribuicao Gru. 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 CBD stock valuation model: a) initial revenue growth rate of 9.5% 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 4.3%, whose default value for CBD is calculated based on our internal credit rating of Companhia Brasileira de Distribuicao Gru, 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 Companhia Brasileira de Distribuicao Gru.
    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 CBD stock the variable cost ratio is equal to 95.7%.

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 CBD 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 Companhia Brasileira de Distribuicao Gru.

Corporate tax rate of 27% is the nominal tax rate for Companhia Brasileira de Distribuicao Gru. 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 CBD 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 CBD are equal to 29.7%.

Life of production assets of 12.9 years is the average useful life of capital assets used in Companhia Brasileira de Distribuicao Gru 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 CBD is equal to 4.6%. 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 - $3117 million for Companhia Brasileira de Distribuicao Gru - 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 273.789 million for Companhia Brasileira de Distribuicao Gru 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 Companhia Brasileira de Distribuicao Gru at the current share price and the inputted number of shares is $6.9 billion.

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