Intrinsic value of Cott - COT

Previous Close

$15.48

  Intrinsic Value

$22.30

stock screener

  Rating & Target

buy

+44%

  Value-price divergence*

+136%

Previous close

$15.48

 
Intrinsic value

$22.30

 
Up/down potential

+44%

 
Rating

buy

 
Value-price divergence*

+136%

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

We calculate the intrinsic value of COT 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 2.1

 

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, %
  9.92
  28.40
  26.06
  23.95
  22.06
  20.35
  18.82
  17.44
  16.19
  15.07
  14.07
  13.16
  12.34
  11.61
  10.95
  10.35
  9.82
  9.34
  8.90
  8.51
  8.16
  7.84
  7.56
  7.30
  7.07
  6.87
  6.68
  6.51
  6.36
  6.22
  6.10
Revenue, $m
  3,236
  4,155
  5,238
  6,492
  7,925
  9,538
  11,332
  13,308
  15,463
  17,794
  20,296
  22,967
  25,802
  28,798
  31,950
  35,258
  38,720
  42,335
  46,104
  50,028
  54,111
  58,356
  62,768
  67,352
  72,117
  77,069
  82,217
  87,571
  93,141
  98,938
  104,976
Variable operating expenses, $m
 
  3,980
  4,987
  6,154
  7,485
  8,984
  10,653
  12,490
  14,493
  16,660
  18,987
  21,352
  23,988
  26,773
  29,704
  32,779
  35,997
  39,358
  42,862
  46,510
  50,306
  54,253
  58,354
  62,617
  67,046
  71,650
  76,436
  81,414
  86,592
  91,982
  97,595
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
  3,154
  3,980
  4,987
  6,154
  7,485
  8,984
  10,653
  12,490
  14,493
  16,660
  18,987
  21,352
  23,988
  26,773
  29,704
  32,779
  35,997
  39,358
  42,862
  46,510
  50,306
  54,253
  58,354
  62,617
  67,046
  71,650
  76,436
  81,414
  86,592
  91,982
  97,595
Operating income, $m
  82
  175
  251
  339
  440
  553
  679
  818
  970
  1,134
  1,310
  1,615
  1,814
  2,025
  2,246
  2,479
  2,722
  2,977
  3,242
  3,517
  3,805
  4,103
  4,413
  4,736
  5,071
  5,419
  5,781
  6,157
  6,549
  6,956
  7,381
EBITDA, $m
  321
  486
  613
  760
  927
  1,116
  1,326
  1,558
  1,810
  2,083
  2,375
  2,688
  3,020
  3,370
  3,739
  4,127
  4,532
  4,955
  5,396
  5,855
  6,333
  6,830
  7,346
  7,883
  8,440
  9,020
  9,622
  10,249
  10,901
  11,580
  12,286
Interest expense (income), $m
  125
  135
  190
  254
  329
  414
  509
  616
  733
  861
  999
  1,147
  1,306
  1,474
  1,652
  1,839
  2,035
  2,240
  2,455
  2,678
  2,911
  3,153
  3,405
  3,667
  3,939
  4,221
  4,515
  4,821
  5,138
  5,469
  5,813
Earnings before tax, $m
  -46
  39
  61
  85
  111
  140
  170
  203
  237
  273
  311
  467
  508
  551
  595
  640
  687
  736
  787
  839
  893
  950
  1,008
  1,069
  1,132
  1,197
  1,265
  1,336
  1,411
  1,488
  1,568
Tax expense, $m
  26
  11
  16
  23
  30
  38
  46
  55
  64
  74
  84
  126
  137
  149
  161
  173
  186
  199
  212
  227
  241
  256
  272
  289
  306
  323
  342
  361
  381
  402
  423
Net income, $m
  -78
  29
  44
  62
  81
  102
  124
  148
  173
  199
  227
  341
  371
  402
  434
  467
  502
  537
  574
  613
  652
  693
  736
  780
  826
  874
  924
  976
  1,030
  1,086
  1,145

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  118
  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
  3,940
  4,906
  6,184
  7,665
  9,356
  11,260
  13,379
  15,712
  18,256
  21,008
  23,963
  27,116
  30,463
  33,999
  37,722
  41,627
  45,714
  49,982
  54,432
  59,065
  63,885
  68,897
  74,106
  79,519
  85,144
  90,990
  97,068
  103,389
  109,966
  116,810
  123,938
Adjusted assets (=assets-cash), $m
  3,822
  4,906
  6,184
  7,665
  9,356
  11,260
  13,379
  15,712
  18,256
  21,008
  23,963
  27,116
  30,463
  33,999
  37,722
  41,627
  45,714
  49,982
  54,432
  59,065
  63,885
  68,897
  74,106
  79,519
  85,144
  90,990
  97,068
  103,389
  109,966
  116,810
  123,938
Revenue / Adjusted assets
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
  0.847
Average production assets, $m
  1,662
  2,136
  2,692
  3,337
  4,073
  4,902
  5,825
  6,840
  7,948
  9,146
  10,432
  11,805
  13,262
  14,802
  16,422
  18,123
  19,902
  21,760
  23,697
  25,714
  27,813
  29,995
  32,263
  34,619
  37,068
  39,613
  42,259
  45,011
  47,874
  50,854
  53,958
Working capital, $m
  43
  179
  225
  279
  341
  410
  487
  572
  665
  765
  873
  988
  1,109
  1,238
  1,374
  1,516
  1,665
  1,820
  1,982
  2,151
  2,327
  2,509
  2,699
  2,896
  3,101
  3,314
  3,535
  3,766
  4,005
  4,254
  4,514
Total debt, $m
  2,201
  2,922
  3,910
  5,055
  6,362
  7,834
  9,472
  11,275
  13,242
  15,369
  17,653
  20,091
  22,678
  25,412
  28,289
  31,308
  34,467
  37,766
  41,206
  44,787
  48,513
  52,387
  56,414
  60,598
  64,946
  69,465
  74,164
  79,050
  84,133
  89,424
  94,934
Total liabilities, $m
  3,071
  3,792
  4,780
  5,925
  7,232
  8,704
  10,342
  12,145
  14,112
  16,239
  18,523
  20,961
  23,548
  26,282
  29,159
  32,178
  35,337
  38,636
  42,076
  45,657
  49,383
  53,257
  57,284
  61,468
  65,816
  70,335
  75,034
  79,920
  85,003
  90,294
  95,804
Total equity, $m
  869
  1,114
  1,404
  1,740
  2,124
  2,556
  3,037
  3,567
  4,144
  4,769
  5,440
  6,155
  6,915
  7,718
  8,563
  9,449
  10,377
  11,346
  12,356
  13,408
  14,502
  15,640
  16,822
  18,051
  19,328
  20,655
  22,034
  23,469
  24,962
  26,516
  28,134
Total liabilities and equity, $m
  3,940
  4,906
  6,184
  7,665
  9,356
  11,260
  13,379
  15,712
  18,256
  21,008
  23,963
  27,116
  30,463
  34,000
  37,722
  41,627
  45,714
  49,982
  54,432
  59,065
  63,885
  68,897
  74,106
  79,519
  85,144
  90,990
  97,068
  103,389
  109,965
  116,810
  123,938
Debt-to-equity ratio
  2.533
  2.620
  2.790
  2.910
  3.000
  3.060
  3.120
  3.160
  3.200
  3.220
  3.250
  3.260
  3.280
  3.290
  3.300
  3.310
  3.320
  3.330
  3.330
  3.340
  3.350
  3.350
  3.350
  3.360
  3.360
  3.360
  3.370
  3.370
  3.370
  3.370
  3.370
Adjusted equity ratio
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -78
  29
  44
  62
  81
  102
  124
  148
  173
  199
  227
  341
  371
  402
  434
  467
  502
  537
  574
  613
  652
  693
  736
  780
  826
  874
  924
  976
  1,030
  1,086
  1,145
Depreciation, amort., depletion, $m
  239
  312
  362
  421
  488
  563
  647
  739
  840
  949
  1,066
  1,073
  1,206
  1,346
  1,493
  1,648
  1,809
  1,978
  2,154
  2,338
  2,528
  2,727
  2,933
  3,147
  3,370
  3,601
  3,842
  4,092
  4,352
  4,623
  4,905
Funds from operations, $m
  317
  340
  407
  483
  569
  665
  771
  887
  1,013
  1,148
  1,293
  1,414
  1,577
  1,748
  1,927
  2,115
  2,311
  2,516
  2,729
  2,950
  3,181
  3,420
  3,669
  3,927
  4,196
  4,475
  4,766
  5,068
  5,382
  5,709
  6,050
Change in working capital, $m
  47
  40
  47
  54
  62
  69
  77
  85
  93
  100
  108
  115
  122
  129
  136
  142
  149
  155
  162
  169
  176
  183
  190
  197
  205
  213
  221
  230
  240
  249
  260
Cash from operations, $m
  270
  301
  360
  429
  507
  596
  694
  802
  920
  1,048
  1,185
  1,300
  1,455
  1,619
  1,791
  1,973
  2,162
  2,360
  2,567
  2,781
  3,005
  3,238
  3,479
  3,730
  3,991
  4,262
  4,544
  4,837
  5,142
  5,460
  5,790
Maintenance CAPEX, $m
  0
  -151
  -194
  -245
  -303
  -370
  -446
  -530
  -622
  -723
  -831
  -948
  -1,073
  -1,206
  -1,346
  -1,493
  -1,648
  -1,809
  -1,978
  -2,154
  -2,338
  -2,528
  -2,727
  -2,933
  -3,147
  -3,370
  -3,601
  -3,842
  -4,092
  -4,352
  -4,623
New CAPEX, $m
  -148
  -474
  -557
  -645
  -736
  -829
  -922
  -1,016
  -1,108
  -1,198
  -1,286
  -1,373
  -1,457
  -1,540
  -1,621
  -1,700
  -1,779
  -1,858
  -1,937
  -2,017
  -2,099
  -2,182
  -2,268
  -2,357
  -2,449
  -2,545
  -2,646
  -2,752
  -2,863
  -2,980
  -3,103
Cash from investing activities, $m
  -1,097
  -625
  -751
  -890
  -1,039
  -1,199
  -1,368
  -1,546
  -1,730
  -1,921
  -2,117
  -2,321
  -2,530
  -2,746
  -2,967
  -3,193
  -3,427
  -3,667
  -3,915
  -4,171
  -4,437
  -4,710
  -4,995
  -5,290
  -5,596
  -5,915
  -6,247
  -6,594
  -6,955
  -7,332
  -7,726
Free cash flow, $m
  -827
  -324
  -391
  -461
  -532
  -604
  -674
  -743
  -809
  -873
  -933
  -1,022
  -1,076
  -1,126
  -1,175
  -1,221
  -1,265
  -1,307
  -1,349
  -1,390
  -1,431
  -1,473
  -1,515
  -1,559
  -1,605
  -1,653
  -1,703
  -1,756
  -1,813
  -1,872
  -1,936
Issuance/(repayment) of debt, $m
  578
  839
  988
  1,145
  1,307
  1,472
  1,638
  1,803
  1,967
  2,127
  2,284
  2,437
  2,587
  2,734
  2,877
  3,019
  3,159
  3,299
  3,440
  3,582
  3,726
  3,874
  4,026
  4,184
  4,348
  4,519
  4,698
  4,886
  5,083
  5,291
  5,510
Issuance/(repurchase) of shares, $m
  361
  216
  246
  274
  303
  330
  357
  382
  405
  425
  444
  375
  389
  401
  411
  419
  426
  431
  436
  439
  442
  444
  447
  449
  451
  453
  456
  459
  463
  468
  473
Cash from financing (excl. dividends), $m  
  907
  1,055
  1,234
  1,419
  1,610
  1,802
  1,995
  2,185
  2,372
  2,552
  2,728
  2,812
  2,976
  3,135
  3,288
  3,438
  3,585
  3,730
  3,876
  4,021
  4,168
  4,318
  4,473
  4,633
  4,799
  4,972
  5,154
  5,345
  5,546
  5,759
  5,983
Total cash flow (excl. dividends), $m
  72
  731
  843
  959
  1,078
  1,199
  1,321
  1,442
  1,562
  1,680
  1,795
  1,790
  1,900
  2,008
  2,113
  2,217
  2,321
  2,423
  2,526
  2,631
  2,737
  2,846
  2,958
  3,073
  3,194
  3,320
  3,451
  3,589
  3,734
  3,887
  4,047
Retained Cash Flow (-), $m
  -230
  -245
  -290
  -336
  -384
  -432
  -481
  -530
  -578
  -625
  -671
  -716
  -760
  -803
  -845
  -887
  -928
  -969
  -1,010
  -1,052
  -1,094
  -1,138
  -1,182
  -1,229
  -1,277
  -1,327
  -1,380
  -1,435
  -1,493
  -1,554
  -1,618
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
 
  486
  553
  622
  694
  766
  840
  913
  985
  1,055
  1,125
  1,075
  1,141
  1,205
  1,269
  1,331
  1,393
  1,454
  1,516
  1,579
  1,643
  1,708
  1,775
  1,845
  1,917
  1,992
  2,071
  2,154
  2,241
  2,333
  2,429
Discount rate, %
 
  10.60
  11.13
  11.69
  12.27
  12.88
  13.53
  14.21
  14.92
  15.66
  16.44
  17.27
  18.13
  19.04
  19.99
  20.99
  22.04
  23.14
  24.30
  25.51
  26.79
  28.12
  29.53
  31.01
  32.56
  34.19
  35.90
  37.69
  39.57
  41.55
  43.63
PV of cash for distribution, $m
 
  440
  448
  447
  437
  418
  392
  360
  324
  285
  245
  186
  154
  125
  99
  76
  58
  42
  30
  21
  14
  9
  6
  4
  2
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  90.8
  83.4
  77.2
  72.1
  67.8
  64.2
  61.1
  58.4
  56.0
  54.0
  52.5
  51.2
  50.0
  49.0
  48.0
  47.2
  46.4
  45.7
  45.0
  44.4
  43.9
  43.4
  42.9
  42.5
  42.1
  41.7
  41.3
  41.0
  40.7
  40.4

Cott Corporation, together with its subsidiaries, produces and sells beverages on behalf of retailers, brand owners, and distributors worldwide. Its product lines include carbonated soft drinks, juice and juice-based products, clear and flavored waters, energy drinks and shots, sports products, new age beverages, ready-to-drink teas and alcoholic beverages, beverage concentrates, liquid enhancers, and freezables, as well as hot chocolate, coffee, malt drinks, creamers/whiteners, and cereals. The company offers its products under various retailer brands, which include Cott and Red Rain brand in North America and the United Kingdom; Stars & Stripes, Vess, Vintage, So Clear, Shanstar, Harvest Classic, Chadwick Bay, Exact, Alhambra, Belmont Springs, Deep Rock, Hinckley Springs, Sparkletts, Crystal Springs, Kentwood Springs, Mount Olympus Standard Coffee, and Javarama brands in the United States; Emerge, Red Rooster, MacB, Carters, Calypso, Mr. Freeze, Jubbly, Suso, Cafe Nueva, and Ben Shaws brands in the United Kingdom; Stars & Stripes brand in Mexico; and RC brand name in approximately 120 countries and territories outside of North America. It also provides contract manufacturing services. The company’s customers include grocery, mass-merchandise, drugstore, wholesale, and convenience store chains. Cott Corporation was founded in 1955 and is based in Tampa, Florida.

FINANCIAL RATIOS  of  Cott (COT)

Valuation Ratios
P/E Ratio -27.5
Price to Sales 0.7
Price to Book 2.5
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 17.6
Growth Rates
Sales Growth Rate 9.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 28.7%
Cap. Spend. - 3 Yr. Gr. Rate 19.4%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 228.8%
Total Debt to Equity 253.3%
Interest Coverage 1
Management Effectiveness
Return On Assets 3.4%
Ret/ On Assets - 3 Yr. Avg. -12%
Return On Total Capital -2.9%
Ret/ On T. Cap. - 3 Yr. Avg. -0.6%
Return On Equity -10.3%
Return On Equity - 3 Yr. Avg. -2.1%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 33.2%
Gross Margin - 3 Yr. Avg. 25.6%
EBITDA Margin 9.8%
EBITDA Margin - 3 Yr. Avg. 8.8%
Operating Margin 2.5%
Oper. Margin - 3 Yr. Avg. 2.2%
Pre-Tax Margin -1.4%
Pre-Tax Margin - 3 Yr. Avg. -1.2%
Net Profit Margin -2.4%
Net Profit Margin - 3 Yr. Avg. -0.5%
Effective Tax Rate -56.5%
Eff/ Tax Rate - 3 Yr. Avg. 409.7%
Payout Ratio -39.7%

COT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the COT stock intrinsic value calculation we used $3236 million for the last fiscal year's total revenue generated by Cott. The default revenue input number comes from 2016 income statement of Cott. 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 COT stock valuation model: a) initial revenue growth rate of 28.4% 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 10.6%, whose default value for COT is calculated based on our internal credit rating of Cott, 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 Cott.
    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 COT stock the variable cost ratio is equal to 96.6%.

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 COT 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 6.5% for Cott.

Corporate tax rate of 27% is the nominal tax rate for Cott. 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 COT 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 COT are equal to 51.4%.

Life of production assets of 11 years is the average useful life of capital assets used in Cott 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 COT is equal to 4.3%. 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 - $869 million for Cott - 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 138.127 million for Cott 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 Cott at the current share price and the inputted number of shares is $2.1 billion.

RELATED COMPANIES Price Int.Val. Rating
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PEP PepsiCo 119.10 57.05  sell
COKE Coca-Cola Bott 213.36 690.33  str.buy
FIZZ National Bever 113.64 102.10  hold
LBIX Leading Brands 1.24 0.82  sell

COMPANY NEWS

▶ Cott reports 2Q loss   [Aug-04-17 02:36AM  Associated Press]
▶ Cott Declares Quarterly Dividend   [Aug-02-17 07:30AM  PR Newswire]
▶ Cott agrees to sell bottling business for $1.25B   [Jul-25-17 10:11PM  American City Business Journals]
▶ Tampa beverage maker is merger target, reports say   [Jul-13-17 04:55PM  American City Business Journals]
▶ ETFs with exposure to Cott Corp. (Canada) : July 4, 2017   [Jul-04-17 02:47PM  Capital Cube]
▶ 3 Stocks with Universal Display-like Return Potential   [Jun-18-17 02:32PM  Motley Fool]
▶ ETFs with exposure to Cott Corp. (Canada) : June 14, 2017   [Jun-14-17 01:31PM  Capital Cube]
▶ Cott Announces Upcoming Investor and Analyst Day   [Jun-05-17 05:04PM  CNW Group]
▶ ETFs with exposure to Cott Corp. (Canada) : June 1, 2017   [Jun-01-17 01:42PM  Capital Cube]
▶ ETFs with exposure to Cott Corp. (Canada) : May 22, 2017   [May-22-17 01:28PM  Capital Cube]
▶ Cott Announces Participation in Upcoming Conferences   [May-11-17 04:45PM  PR Newswire]
▶ Beverage Companies Release Earnings This Week   [May-05-17 11:01AM  Investopedia]
▶ Cott reports 1Q loss   [07:51AM  Associated Press]
▶ Cott Reports First Quarter 2017 Results   [06:55AM  PR Newswire]
▶ Weekly CEO Buys Highlights   [Mar-13-17 12:39PM  GuruFocus.com]
▶ Incentives sweeten expansion for Tampa beverage company   [Jan-13-17 11:55AM  at bizjournals.com]
▶ Best Investing Ideas For 2017   [Dec-28-16 11:02AM  at Forbes]
▶ Is American Assets Trust, Inc (AAT) A Good Stock To Buy?   [Dec-20-16 03:55PM  at Insider Monkey]
▶ Is Rice Midstream Partners LP (RMP) A Good Stock To Buy?   [Dec-18-16 02:03PM  at Insider Monkey]
▶ Here is What Hedge Funds Think About Cott Corporation (USA) (COT)   [Dec-08-16 11:37AM  at Insider Monkey]
▶ Cott Declares Quarterly Dividend   [Nov-15-16 01:07PM  Marketwired]
▶ Cott Reports Third Quarter 2016 Results   [07:30AM  Marketwired]
Stock chart of COT Financial statements of COT
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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