Intrinsic value of Catalent - CTLT

Previous Close

$35.30

  Intrinsic Value

$32.12

stock screener

  Rating & Target

hold

-9%

  Value-price divergence*

-13%

Previous close

$35.30

 
Intrinsic value

$32.12

 
Up/down potential

-9%

 
Rating

hold

 
Value-price divergence*

-13%

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

We calculate the intrinsic value of CTLT 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 4.3

 

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, %
  0.93
  21.70
  20.03
  18.53
  17.17
  15.96
  14.86
  13.88
  12.99
  12.19
  11.47
  10.82
  10.24
  9.72
  9.24
  8.82
  8.44
  8.09
  7.79
  7.51
  7.26
  7.03
  6.83
  6.64
  6.48
  6.33
  6.20
  6.08
  5.97
  5.87
  5.79
Revenue, $m
  1,848
  2,249
  2,699
  3,200
  3,749
  4,347
  4,993
  5,686
  6,425
  7,208
  8,035
  8,904
  9,816
  10,770
  11,766
  12,803
  13,884
  15,008
  16,176
  17,390
  18,652
  19,963
  21,326
  22,743
  24,217
  25,751
  27,347
  29,009
  30,741
  32,547
  34,430
Variable operating expenses, $m
 
  1,960
  2,332
  2,746
  3,200
  3,695
  4,230
  4,803
  5,413
  6,061
  6,745
  7,364
  8,118
  8,907
  9,731
  10,589
  11,483
  12,412
  13,378
  14,383
  15,426
  16,511
  17,638
  18,810
  20,029
  21,297
  22,617
  23,992
  25,425
  26,918
  28,476
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
  1,630
  1,960
  2,332
  2,746
  3,200
  3,695
  4,230
  4,803
  5,413
  6,061
  6,745
  7,364
  8,118
  8,907
  9,731
  10,589
  11,483
  12,412
  13,378
  14,383
  15,426
  16,511
  17,638
  18,810
  20,029
  21,297
  22,617
  23,992
  25,425
  26,918
  28,476
Operating income, $m
  218
  289
  367
  454
  549
  652
  764
  884
  1,011
  1,147
  1,290
  1,540
  1,698
  1,863
  2,035
  2,214
  2,401
  2,596
  2,798
  3,008
  3,226
  3,453
  3,688
  3,933
  4,188
  4,454
  4,730
  5,017
  5,317
  5,629
  5,955
EBITDA, $m
  359
  482
  579
  686
  804
  932
  1,071
  1,219
  1,378
  1,546
  1,723
  1,910
  2,105
  2,310
  2,523
  2,746
  2,977
  3,218
  3,469
  3,729
  4,000
  4,281
  4,573
  4,877
  5,193
  5,522
  5,865
  6,221
  6,592
  6,980
  7,384
Interest expense (income), $m
  82
  81
  104
  130
  159
  190
  225
  262
  302
  345
  390
  438
  488
  541
  596
  653
  713
  775
  840
  908
  978
  1,051
  1,126
  1,205
  1,287
  1,372
  1,460
  1,553
  1,649
  1,749
  1,853
Earnings before tax, $m
  145
  209
  263
  324
  390
  462
  539
  622
  709
  802
  900
  1,102
  1,210
  1,322
  1,439
  1,561
  1,688
  1,820
  1,957
  2,100
  2,248
  2,402
  2,562
  2,728
  2,902
  3,082
  3,269
  3,465
  3,668
  3,881
  4,102
Tax expense, $m
  34
  56
  71
  87
  105
  125
  146
  168
  192
  217
  243
  298
  327
  357
  389
  422
  456
  491
  529
  567
  607
  649
  692
  737
  783
  832
  883
  935
  990
  1,048
  1,108
Net income, $m
  112
  152
  192
  237
  285
  337
  394
  454
  518
  586
  657
  805
  883
  965
  1,051
  1,140
  1,232
  1,329
  1,429
  1,533
  1,641
  1,753
  1,870
  1,992
  2,118
  2,250
  2,387
  2,529
  2,678
  2,833
  2,994

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  132
  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
  3,091
  3,598
  4,319
  5,119
  5,999
  6,956
  7,990
  9,098
  10,280
  11,533
  12,855
  14,247
  15,706
  17,232
  18,825
  20,485
  22,214
  24,012
  25,881
  27,824
  29,843
  31,941
  34,122
  36,389
  38,747
  41,201
  43,755
  46,415
  49,186
  52,075
  55,089
Adjusted assets (=assets-cash), $m
  2,959
  3,598
  4,319
  5,119
  5,999
  6,956
  7,990
  9,098
  10,280
  11,533
  12,855
  14,247
  15,706
  17,232
  18,825
  20,485
  22,214
  24,012
  25,881
  27,824
  29,843
  31,941
  34,122
  36,389
  38,747
  41,201
  43,755
  46,415
  49,186
  52,075
  55,089
Revenue / Adjusted assets
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
Average production assets, $m
  1,227
  1,493
  1,792
  2,125
  2,489
  2,887
  3,316
  3,776
  4,266
  4,786
  5,335
  5,912
  6,518
  7,151
  7,812
  8,501
  9,219
  9,965
  10,741
  11,547
  12,385
  13,256
  14,161
  15,102
  16,080
  17,098
  18,158
  19,262
  20,412
  21,611
  22,862
Working capital, $m
  399
  360
  432
  512
  600
  696
  799
  910
  1,028
  1,153
  1,286
  1,425
  1,571
  1,723
  1,882
  2,049
  2,221
  2,401
  2,588
  2,782
  2,984
  3,194
  3,412
  3,639
  3,875
  4,120
  4,375
  4,641
  4,919
  5,208
  5,509
Total debt, $m
  1,861
  2,357
  2,948
  3,604
  4,325
  5,110
  5,957
  6,866
  7,835
  8,863
  9,947
  11,088
  12,285
  13,536
  14,842
  16,204
  17,621
  19,096
  20,629
  22,222
  23,877
  25,598
  27,386
  29,245
  31,179
  33,191
  35,285
  37,466
  39,739
  42,108
  44,579
Total liabilities, $m
  2,455
  2,951
  3,542
  4,198
  4,919
  5,704
  6,551
  7,460
  8,429
  9,457
  10,541
  11,682
  12,879
  14,130
  15,436
  16,798
  18,215
  19,690
  21,223
  22,816
  24,471
  26,192
  27,980
  29,839
  31,773
  33,785
  35,879
  38,060
  40,333
  42,702
  45,173
Total equity, $m
  636
  648
  777
  921
  1,080
  1,252
  1,438
  1,638
  1,850
  2,076
  2,314
  2,564
  2,827
  3,102
  3,388
  3,687
  3,999
  4,322
  4,659
  5,008
  5,372
  5,749
  6,142
  6,550
  6,975
  7,416
  7,876
  8,355
  8,854
  9,374
  9,916
Total liabilities and equity, $m
  3,091
  3,599
  4,319
  5,119
  5,999
  6,956
  7,989
  9,098
  10,279
  11,533
  12,855
  14,246
  15,706
  17,232
  18,824
  20,485
  22,214
  24,012
  25,882
  27,824
  29,843
  31,941
  34,122
  36,389
  38,748
  41,201
  43,755
  46,415
  49,187
  52,076
  55,089
Debt-to-equity ratio
  2.926
  3.640
  3.790
  3.910
  4.010
  4.080
  4.140
  4.190
  4.230
  4.270
  4.300
  4.320
  4.350
  4.360
  4.380
  4.390
  4.410
  4.420
  4.430
  4.440
  4.440
  4.450
  4.460
  4.460
  4.470
  4.480
  4.480
  4.480
  4.490
  4.490
  4.500
Adjusted equity ratio
  0.170
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  112
  152
  192
  237
  285
  337
  394
  454
  518
  586
  657
  805
  883
  965
  1,051
  1,140
  1,232
  1,329
  1,429
  1,533
  1,641
  1,753
  1,870
  1,992
  2,118
  2,250
  2,387
  2,529
  2,678
  2,833
  2,994
Depreciation, amort., depletion, $m
  141
  193
  212
  232
  255
  280
  307
  336
  366
  399
  433
  370
  407
  447
  488
  531
  576
  623
  671
  722
  774
  828
  885
  944
  1,005
  1,069
  1,135
  1,204
  1,276
  1,351
  1,429
Funds from operations, $m
  53
  345
  404
  469
  540
  617
  700
  789
  884
  984
  1,090
  1,174
  1,291
  1,412
  1,539
  1,671
  1,809
  1,952
  2,100
  2,255
  2,415
  2,582
  2,755
  2,936
  3,123
  3,318
  3,521
  3,733
  3,954
  4,183
  4,423
Change in working capital, $m
  -102
  64
  72
  80
  88
  96
  103
  111
  118
  125
  132
  139
  146
  153
  159
  166
  173
  180
  187
  194
  202
  210
  218
  227
  236
  245
  255
  266
  277
  289
  301
Cash from operations, $m
  155
  281
  332
  389
  452
  522
  597
  679
  766
  859
  958
  1,035
  1,145
  1,259
  1,380
  1,505
  1,636
  1,772
  1,913
  2,060
  2,213
  2,372
  2,537
  2,709
  2,887
  3,073
  3,266
  3,467
  3,676
  3,895
  4,122
Maintenance CAPEX, $m
  0
  -77
  -93
  -112
  -133
  -156
  -180
  -207
  -236
  -267
  -299
  -333
  -370
  -407
  -447
  -488
  -531
  -576
  -623
  -671
  -722
  -774
  -828
  -885
  -944
  -1,005
  -1,069
  -1,135
  -1,204
  -1,276
  -1,351
New CAPEX, $m
  -140
  -266
  -299
  -332
  -365
  -397
  -429
  -460
  -490
  -520
  -549
  -577
  -605
  -633
  -661
  -689
  -717
  -746
  -776
  -806
  -838
  -871
  -905
  -941
  -979
  -1,018
  -1,060
  -1,104
  -1,150
  -1,199
  -1,251
Cash from investing activities, $m
  -138
  -343
  -392
  -444
  -498
  -553
  -609
  -667
  -726
  -787
  -848
  -910
  -975
  -1,040
  -1,108
  -1,177
  -1,248
  -1,322
  -1,399
  -1,477
  -1,560
  -1,645
  -1,733
  -1,826
  -1,923
  -2,023
  -2,129
  -2,239
  -2,354
  -2,475
  -2,602
Free cash flow, $m
  17
  -62
  -60
  -55
  -45
  -31
  -12
  11
  40
  72
  110
  124
  170
  219
  272
  328
  387
  449
  515
  583
  654
  727
  804
  883
  965
  1,050
  1,137
  1,228
  1,322
  1,420
  1,521
Issuance/(repayment) of debt, $m
  -16
  524
  591
  656
  721
  785
  848
  909
  969
  1,027
  1,085
  1,141
  1,196
  1,251
  1,306
  1,362
  1,417
  1,474
  1,533
  1,593
  1,656
  1,720
  1,788
  1,859
  1,934
  2,012
  2,094
  2,181
  2,273
  2,369
  2,471
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  -31
  524
  591
  656
  721
  785
  848
  909
  969
  1,027
  1,085
  1,141
  1,196
  1,251
  1,306
  1,362
  1,417
  1,474
  1,533
  1,593
  1,656
  1,720
  1,788
  1,859
  1,934
  2,012
  2,094
  2,181
  2,273
  2,369
  2,471
Total cash flow (excl. dividends), $m
  -20
  462
  531
  601
  675
  754
  835
  920
  1,009
  1,100
  1,194
  1,265
  1,366
  1,470
  1,578
  1,689
  1,804
  1,924
  2,048
  2,176
  2,309
  2,448
  2,592
  2,742
  2,899
  3,062
  3,232
  3,409
  3,595
  3,789
  3,992
Retained Cash Flow (-), $m
  -2
  -116
  -130
  -144
  -158
  -172
  -186
  -200
  -213
  -226
  -238
  -250
  -263
  -275
  -287
  -299
  -311
  -324
  -336
  -350
  -363
  -378
  -393
  -408
  -424
  -442
  -460
  -479
  -499
  -520
  -542
Prev. year cash balance distribution, $m
 
  104
  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
 
  450
  401
  457
  517
  581
  649
  721
  796
  874
  956
  1,015
  1,103
  1,195
  1,291
  1,390
  1,493
  1,600
  1,711
  1,826
  1,946
  2,070
  2,199
  2,334
  2,474
  2,620
  2,772
  2,931
  3,096
  3,269
  3,449
Discount rate, %
 
  10.30
  10.82
  11.36
  11.92
  12.52
  13.15
  13.80
  14.49
  15.22
  15.98
  16.78
  17.62
  18.50
  19.42
  20.39
  21.41
  22.48
  23.61
  24.79
  26.03
  27.33
  28.70
  30.13
  31.64
  33.22
  34.88
  36.62
  38.45
  40.38
  42.40
PV of cash for distribution, $m
 
  408
  326
  331
  330
  322
  309
  292
  270
  244
  217
  184
  157
  132
  108
  86
  67
  51
  38
  27
  19
  13
  9
  5
  3
  2
  1
  1
  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
  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

Catalent, Inc. provides advanced delivery technologies and development solutions for drugs, biologics, and consumer health products worldwide. It operates through three segments: Softgel Technologies, Drug Delivery Solutions, and Clinical Supply Services. The Softgel Technologies segment provides formulation, development, and manufacturing services for softgels, which are used in a range of customer products, including prescription drugs, over-the-counter medications, dietary supplements, and unit-dose cosmetics. Its principal softgel technologies include traditional softgel capsules, and Vegicaps and OptiShell capsules. The Drug Delivery Solutions segment formulates, develops, and manufactures prescription, and consumer and animal health products using proprietary technologies, including OptiMelt, OptiPact, OptiForm, and Zydis, as well as other proprietary and conventional drug delivery technologies, such as prefilled syringes; manufactures blow-fill seal unit dose, including ADVASEPT technology; develops biologic cell line, including GPEx and SMARTag technologies; and provides analytical and bioanalytical development, and testing services, as well as offers respiratory products formulation and manufacturing, micronization and particle engineering, and regulatory consulting services. The Clinical Supply Services segment provides manufacturing, packaging, storage, distribution, and inventory management for drugs and biologics clinical trials for customer required patient kits. This segment also offers FastChain demand-led clinical supply services; clinical e-solutions and informatics; and comparator sourcing services. The company serves pharmaceutical and biotechnology companies; and consumer health companies, as well as companies in other healthcare market segments, such as animal health and medical devices, and companies in industries, including cosmetics. Catalent, Inc. was founded in 2007 and is headquartered in Somerset, New Jersey.

FINANCIAL RATIOS  of  Catalent (CTLT)

Valuation Ratios
P/E Ratio 39.3
Price to Sales 2.4
Price to Book 6.9
Price to Tangible Book
Price to Cash Flow 28.4
Price to Free Cash Flow 293.5
Growth Rates
Sales Growth Rate 0.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -0.7%
Cap. Spend. - 3 Yr. Gr. Rate 2.6%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 288.2%
Total Debt to Equity 292.6%
Interest Coverage 3
Management Effectiveness
Return On Assets 5.6%
Ret/ On Assets - 3 Yr. Avg. 6.9%
Return On Total Capital 4.5%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity 17.6%
Return On Equity - 3 Yr. Avg. 58.3%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 31.8%
Gross Margin - 3 Yr. Avg. 32.7%
EBITDA Margin 19.9%
EBITDA Margin - 3 Yr. Avg. 19.8%
Operating Margin 11.8%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 7.8%
Pre-Tax Margin - 3 Yr. Avg. 5.9%
Net Profit Margin 6.1%
Net Profit Margin - 3 Yr. Avg. 6.2%
Effective Tax Rate 23.4%
Eff/ Tax Rate - 3 Yr. Avg. 3.6%
Payout Ratio 0%

CTLT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CTLT stock intrinsic value calculation we used $1848 million for the last fiscal year's total revenue generated by Catalent. The default revenue input number comes from 2016 income statement of Catalent. 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 CTLT stock valuation model: a) initial revenue growth rate of 21.7% 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 10.3%, whose default value for CTLT is calculated based on our internal credit rating of Catalent, 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 Catalent.
    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 CTLT stock the variable cost ratio is equal to 88.1%.

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 CTLT 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 4.4% for Catalent.

Corporate tax rate of 27% is the nominal tax rate for Catalent. 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 CTLT 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 CTLT are equal to 66.4%.

Life of production assets of 16 years is the average useful life of capital assets used in Catalent 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 CTLT is equal to 16%. 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 - $636 million for Catalent - 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 123.051 million for Catalent 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 Catalent at the current share price and the inputted number of shares is $4.3 billion.

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COMPANY NEWS

▶ Catalent, Inc. Value Analysis (NYSE:CTLT) : July 31, 2017   [Jul-31-17 05:51PM  Capital Cube]
▶ ETFs with exposure to Catalent, Inc. : July 3, 2017   [Jul-03-17 03:03PM  Capital Cube]
▶ ETFs with exposure to Catalent, Inc. : June 19, 2017   [Jun-19-17 03:09PM  Capital Cube]
▶ Medical Stock Bolts Higher On 81% Spike In Earnings   [May-12-17 11:21AM  Investor's Business Daily]
▶ Here's Why Catalent Inc. Rose as Much as 20.3% Today   [May-05-17 02:57PM  Motley Fool]
▶ Catalent beats Street 3Q forecasts   [May-04-17 07:39PM  Associated Press]
▶ ETFs with exposure to Catalent, Inc. : February 14, 2017   [Feb-14-17 03:35PM  Capital Cube]
▶ Catalent beats Street 2Q forecasts   [Feb-06-17 04:32PM  Associated Press]
▶ Here is What Hedge Funds Think About Catalent Inc (CTLT)   [Dec-02-16 08:47AM  at Insider Monkey]
Stock chart of CTLT Financial statements of CTLT
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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