Intrinsic value of Companhia Paranaense de Energia-COPEL AD - ELP

Previous Close

$7.41

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$7.41

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of ELP 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 1.8

 

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, %
  -12.34
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  4,782
  15,023
  15,368
  15,763
  16,206
  16,698
  17,237
  17,824
  18,459
  19,144
  19,879
  20,665
  21,503
  22,396
  23,345
  24,352
  25,420
  26,549
  27,744
  29,006
  30,339
  31,745
  33,228
  34,791
  36,439
  38,173
  40,000
  41,922
  43,945
  46,073
  48,312
Variable operating expenses, $m
 
  11,658
  11,926
  12,232
  12,576
  12,957
  13,376
  13,831
  14,324
  14,856
  15,426
  16,036
  16,687
  17,380
  18,116
  18,897
  19,726
  20,602
  21,529
  22,509
  23,543
  24,634
  25,785
  26,998
  28,276
  29,622
  31,040
  32,532
  34,101
  35,753
  37,490
Fixed operating expenses, $m
 
  1,457
  1,493
  1,530
  1,569
  1,608
  1,648
  1,689
  1,731
  1,775
  1,819
  1,864
  1,911
  1,959
  2,008
  2,058
  2,109
  2,162
  2,216
  2,272
  2,328
  2,387
  2,446
  2,508
  2,570
  2,634
  2,700
  2,768
  2,837
  2,908
  2,981
Total operating expenses, $m
  3,496
  13,115
  13,419
  13,762
  14,145
  14,565
  15,024
  15,520
  16,055
  16,631
  17,245
  17,900
  18,598
  19,339
  20,124
  20,955
  21,835
  22,764
  23,745
  24,781
  25,871
  27,021
  28,231
  29,506
  30,846
  32,256
  33,740
  35,300
  36,938
  38,661
  40,471
Operating income, $m
  646
  1,909
  1,950
  2,001
  2,062
  2,133
  2,213
  2,303
  2,404
  2,514
  2,634
  2,764
  2,906
  3,058
  3,222
  3,397
  3,584
  3,785
  3,998
  4,226
  4,467
  4,724
  4,997
  5,286
  5,592
  5,916
  6,260
  6,623
  7,007
  7,412
  7,841
EBITDA, $m
  870
  2,600
  2,656
  2,726
  2,807
  2,901
  3,006
  3,123
  3,253
  3,394
  3,548
  3,715
  3,895
  4,088
  4,295
  4,517
  4,754
  5,006
  5,275
  5,560
  5,863
  6,185
  6,525
  6,886
  7,268
  7,672
  8,100
  8,551
  9,028
  9,532
  10,064
Interest expense (income), $m
  288
  777
  809
  847
  890
  938
  992
  1,050
  1,114
  1,183
  1,258
  1,338
  1,423
  1,515
  1,612
  1,715
  1,825
  1,941
  2,064
  2,194
  2,331
  2,477
  2,630
  2,791
  2,961
  3,141
  3,329
  3,528
  3,737
  3,958
  4,189
Earnings before tax, $m
  467
  1,132
  1,140
  1,154
  1,172
  1,194
  1,221
  1,253
  1,289
  1,330
  1,376
  1,427
  1,482
  1,543
  1,610
  1,682
  1,760
  1,844
  1,934
  2,032
  2,136
  2,248
  2,367
  2,495
  2,631
  2,776
  2,930
  3,095
  3,269
  3,455
  3,652
Tax expense, $m
  167
  306
  308
  312
  316
  322
  330
  338
  348
  359
  371
  385
  400
  417
  435
  454
  475
  498
  522
  549
  577
  607
  639
  674
  710
  749
  791
  836
  883
  933
  986
Net income, $m
  303
  826
  832
  842
  855
  872
  892
  915
  941
  971
  1,004
  1,041
  1,082
  1,127
  1,175
  1,228
  1,285
  1,346
  1,412
  1,483
  1,559
  1,641
  1,728
  1,821
  1,920
  2,026
  2,139
  2,259
  2,387
  2,522
  2,666

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  406
  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
  9,622
  26,683
  27,297
  27,998
  28,786
  29,659
  30,616
  31,659
  32,787
  34,003
  35,308
  36,704
  38,194
  39,780
  41,466
  43,255
  45,150
  47,157
  49,279
  51,521
  53,888
  56,386
  59,020
  61,797
  64,722
  67,803
  71,047
  74,462
  78,055
  81,836
  85,812
Adjusted assets (=assets-cash), $m
  9,216
  26,683
  27,297
  27,998
  28,786
  29,659
  30,616
  31,659
  32,787
  34,003
  35,308
  36,704
  38,194
  39,780
  41,466
  43,255
  45,150
  47,157
  49,279
  51,521
  53,888
  56,386
  59,020
  61,797
  64,722
  67,803
  71,047
  74,462
  78,055
  81,836
  85,812
Revenue / Adjusted assets
  0.519
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
Average production assets, $m
  3,935
  10,020
  10,251
  10,514
  10,810
  11,137
  11,497
  11,889
  12,312
  12,769
  13,259
  13,783
  14,343
  14,938
  15,571
  16,243
  16,955
  17,708
  18,505
  19,347
  20,236
  21,174
  22,163
  23,206
  24,305
  25,462
  26,680
  27,962
  29,311
  30,731
  32,224
Working capital, $m
  -396
  586
  599
  615
  632
  651
  672
  695
  720
  747
  775
  806
  839
  873
  910
  950
  991
  1,035
  1,082
  1,131
  1,183
  1,238
  1,296
  1,357
  1,421
  1,489
  1,560
  1,635
  1,714
  1,797
  1,884
Total debt, $m
  2,794
  6,801
  7,117
  7,478
  7,884
  8,333
  8,826
  9,363
  9,945
  10,571
  11,243
  11,962
  12,729
  13,546
  14,414
  15,335
  16,311
  17,345
  18,437
  19,592
  20,811
  22,098
  23,454
  24,884
  26,391
  27,978
  29,648
  31,407
  33,257
  35,204
  37,252
Total liabilities, $m
  4,923
  13,742
  14,058
  14,419
  14,825
  15,274
  15,767
  16,304
  16,886
  17,512
  18,184
  18,903
  19,670
  20,487
  21,355
  22,276
  23,252
  24,286
  25,378
  26,533
  27,752
  29,039
  30,395
  31,825
  33,332
  34,919
  36,589
  38,348
  40,198
  42,145
  44,193
Total equity, $m
  4,700
  12,941
  13,239
  13,579
  13,961
  14,384
  14,849
  15,355
  15,902
  16,492
  17,125
  17,802
  18,524
  19,293
  20,111
  20,978
  21,898
  22,871
  23,900
  24,988
  26,136
  27,347
  28,625
  29,971
  31,390
  32,885
  34,458
  36,114
  37,857
  39,690
  41,619
Total liabilities and equity, $m
  9,623
  26,683
  27,297
  27,998
  28,786
  29,658
  30,616
  31,659
  32,788
  34,004
  35,309
  36,705
  38,194
  39,780
  41,466
  43,254
  45,150
  47,157
  49,278
  51,521
  53,888
  56,386
  59,020
  61,796
  64,722
  67,804
  71,047
  74,462
  78,055
  81,835
  85,812
Debt-to-equity ratio
  0.594
  0.530
  0.540
  0.550
  0.560
  0.580
  0.590
  0.610
  0.630
  0.640
  0.660
  0.670
  0.690
  0.700
  0.720
  0.730
  0.740
  0.760
  0.770
  0.780
  0.800
  0.810
  0.820
  0.830
  0.840
  0.850
  0.860
  0.870
  0.880
  0.890
  0.900
Adjusted equity ratio
  0.466
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  303
  826
  832
  842
  855
  872
  892
  915
  941
  971
  1,004
  1,041
  1,082
  1,127
  1,175
  1,228
  1,285
  1,346
  1,412
  1,483
  1,559
  1,641
  1,728
  1,821
  1,920
  2,026
  2,139
  2,259
  2,387
  2,522
  2,666
Depreciation, amort., depletion, $m
  224
  691
  707
  725
  745
  768
  793
  820
  849
  881
  914
  951
  989
  1,030
  1,074
  1,120
  1,169
  1,221
  1,276
  1,334
  1,396
  1,460
  1,528
  1,600
  1,676
  1,756
  1,840
  1,928
  2,021
  2,119
  2,222
Funds from operations, $m
  -259
  1,517
  1,539
  1,567
  1,601
  1,640
  1,685
  1,735
  1,790
  1,852
  1,919
  1,992
  2,071
  2,157
  2,249
  2,348
  2,454
  2,567
  2,688
  2,817
  2,955
  3,101
  3,257
  3,422
  3,597
  3,782
  3,979
  4,187
  4,408
  4,641
  4,888
Change in working capital, $m
  -726
  11
  13
  15
  17
  19
  21
  23
  25
  27
  29
  31
  33
  35
  37
  39
  42
  44
  47
  49
  52
  55
  58
  61
  64
  68
  71
  75
  79
  83
  87
Cash from operations, $m
  467
  3,782
  1,526
  1,552
  1,584
  1,621
  1,664
  1,712
  1,766
  1,825
  1,890
  1,961
  2,038
  2,122
  2,212
  2,309
  2,412
  2,523
  2,642
  2,768
  2,903
  3,046
  3,199
  3,361
  3,532
  3,715
  3,908
  4,112
  4,329
  4,558
  4,801
Maintenance CAPEX, $m
  0
  -677
  -691
  -707
  -725
  -745
  -768
  -793
  -820
  -849
  -881
  -914
  -951
  -989
  -1,030
  -1,074
  -1,120
  -1,169
  -1,221
  -1,276
  -1,334
  -1,396
  -1,460
  -1,528
  -1,600
  -1,676
  -1,756
  -1,840
  -1,928
  -2,021
  -2,119
New CAPEX, $m
  -700
  -197
  -230
  -263
  -296
  -328
  -360
  -392
  -424
  -457
  -490
  -524
  -559
  -596
  -633
  -672
  -712
  -753
  -797
  -842
  -889
  -938
  -989
  -1,043
  -1,099
  -1,157
  -1,218
  -1,282
  -1,349
  -1,420
  -1,493
Cash from investing activities, $m
  -794
  -874
  -921
  -970
  -1,021
  -1,073
  -1,128
  -1,185
  -1,244
  -1,306
  -1,371
  -1,438
  -1,510
  -1,585
  -1,663
  -1,746
  -1,832
  -1,922
  -2,018
  -2,118
  -2,223
  -2,334
  -2,449
  -2,571
  -2,699
  -2,833
  -2,974
  -3,122
  -3,277
  -3,441
  -3,612
Free cash flow, $m
  -327
  2,908
  604
  582
  563
  548
  536
  527
  522
  519
  520
  523
  528
  537
  549
  563
  580
  600
  624
  650
  680
  713
  749
  789
  833
  881
  934
  990
  1,051
  1,117
  1,188
Issuance/(repayment) of debt, $m
  286
  273
  316
  361
  406
  449
  493
  537
  581
  626
  672
  719
  767
  817
  868
  921
  976
  1,033
  1,093
  1,155
  1,219
  1,286
  1,357
  1,430
  1,507
  1,587
  1,671
  1,759
  1,851
  1,947
  2,048
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  
  286
  273
  316
  361
  406
  449
  493
  537
  581
  626
  672
  719
  767
  817
  868
  921
  976
  1,033
  1,093
  1,155
  1,219
  1,286
  1,357
  1,430
  1,507
  1,587
  1,671
  1,759
  1,851
  1,947
  2,048
Total cash flow (excl. dividends), $m
  -41
  3,181
  920
  943
  968
  997
  1,029
  1,064
  1,103
  1,145
  1,192
  1,242
  1,296
  1,354
  1,417
  1,484
  1,556
  1,634
  1,716
  1,805
  1,899
  1,999
  2,106
  2,219
  2,340
  2,468
  2,604
  2,749
  2,902
  3,064
  3,236
Retained Cash Flow (-), $m
  -196
  -260
  -298
  -340
  -382
  -423
  -464
  -506
  -547
  -590
  -633
  -677
  -722
  -769
  -818
  -868
  -919
  -973
  -1,029
  -1,087
  -1,148
  -1,211
  -1,278
  -1,347
  -1,419
  -1,494
  -1,573
  -1,656
  -1,743
  -1,833
  -1,928
Prev. year cash balance distribution, $m
 
  1,565
  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
 
  4,486
  623
  603
  586
  574
  565
  559
  556
  556
  559
  564
  573
  585
  599
  617
  637
  661
  687
  717
  751
  788
  828
  873
  921
  974
  1,031
  1,093
  1,159
  1,231
  1,308
Discount rate, %
 
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
 
  4,284
  566
  518
  474
  435
  398
  364
  333
  304
  276
  251
  227
  204
  183
  162
  143
  126
  109
  94
  80
  67
  55
  45
  36
  29
  22
  17
  13
  9
  6
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 Paranaense de Energia - COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Paraná, Brazil. As of December 31, 2015, the company operated 18 hydroelectric plants, 12 wind plants, and 1 thermoelectric plant with a total installed capacity of 5,032.2 megawatts; and owned and operated 2,344 kilometers of transmission lines and 193,527.1 kilometers of distribution lines. It holds concessions to distribute electricity in 394 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. The company also provides telecommunication services to 4,964 corporate clients, including supermarkets, universities, banks, Internet service providers, and television networks, as well as to 43,023 retail clients; and broadband Internet access to public elementary and middle schools. In addition, it supplies piped gas to 31,790 customers, including thermoelectric plants, cogeneration plants, gas stations, other businesses, and residences through a gas distribution network covering 780 kilometers in the State of Paraná. Companhia Paranaense de Energia - COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

FINANCIAL RATIOS  of  Companhia Paranaense de Energia-COPEL AD (ELP)

Valuation Ratios
P/E Ratio 6.7
Price to Sales 0.5
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow 4.3
Price to Free Cash Flow -8.7
Growth Rates
Sales Growth Rate -12.3%
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 5.2%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 41.9%
Total Debt to Equity 59.4%
Interest Coverage 3
Management Effectiveness
Return On Assets 5.2%
Ret/ On Assets - 3 Yr. Avg. 6%
Return On Total Capital 4.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 6.6%
Return On Equity - 3 Yr. Avg. 8.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 23.6%
EBITDA Margin - 3 Yr. Avg. 22.3%
Operating Margin 15.6%
Oper. Margin - 3 Yr. Avg. 14.1%
Pre-Tax Margin 11.3%
Pre-Tax Margin - 3 Yr. Avg. 12.2%
Net Profit Margin 7.3%
Net Profit Margin - 3 Yr. Avg. 8%
Effective Tax Rate 35.8%
Eff/ Tax Rate - 3 Yr. Avg. 31.1%
Payout Ratio 38.6%

ELP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ELP stock intrinsic value calculation we used $14728 million for the last fiscal year's total revenue generated by Companhia Paranaense de Energia-COPEL AD. The default revenue input number comes from 2016 income statement of Companhia Paranaense de Energia-COPEL AD. 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 ELP stock valuation model: a) initial revenue growth rate of 2% 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 4.7%, whose default value for ELP is calculated based on our internal credit rating of Companhia Paranaense de Energia-COPEL AD, 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 Paranaense de Energia-COPEL AD.
    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 ELP stock the variable cost ratio is equal to 77.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1421 million in the base year in the intrinsic value calculation for ELP 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 11.9% for Companhia Paranaense de Energia-COPEL AD.

Corporate tax rate of 27% is the nominal tax rate for Companhia Paranaense de Energia-COPEL AD. 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 ELP 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 ELP are equal to 66.7%.

Life of production assets of 14.5 years is the average useful life of capital assets used in Companhia Paranaense de Energia-COPEL AD 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 ELP is equal to 3.9%. 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 - $14246 million for Companhia Paranaense de Energia-COPEL AD - 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 241.22 million for Companhia Paranaense de Energia-COPEL AD 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 Paranaense de Energia-COPEL AD at the current share price and the inputted number of shares is $1.8 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
PBR Petroleo Brasi 7.87 prem.  prem.
CIG Companhia Ener 2.46 prem.  prem.
GGB Gerdau ADR 3.08 prem.  prem.
CPL CPFL Energia A 16.03 prem.  prem.

COMPANY NEWS

▶ COPEL: Report 20 - F   [May-17-17 11:21AM  PR Newswire]
▶ Paranaense de Energia posts 1Q profit   [05:02AM  Associated Press]
▶ Companhia Paranaense posts 1Q profit   [05:02AM  Associated Press]
▶ Copel records EBITDA of R$1,006.1 million in the 1Q17   [May-15-17 08:23PM  PR Newswire]
▶ Companhia Paranaense reports 4Q loss   [06:04AM  Associated Press]
▶ Paranaense de Energia reports 4Q loss   [05:50AM  Associated Press]
▶ Copel records EBITDA of R$254.3 million in the 4Q16   [Mar-28-17 09:24PM  PR Newswire]
▶ Hedge Funds Keep Buying IBERIABANK Corp (IBKC)   [Dec-02-16 04:33PM  Insider Monkey]
▶ Hedge Funds Keep Buying IBERIABANK Corp (IBKC)   [04:33PM  at Insider Monkey]
▶ Should You Follow Hedge Funds Into Regal Beloit Corp (RBC)?   [Nov-29-16 06:36PM  Insider Monkey]
▶ Copel records net income of R$ 136.1 million in the 1Q16   [May-13-16 09:12AM  PR Newswire]
▶ ENERGY CO OF PARANA Financials   [01:04PM  EDGAR Online Financials]
▶ Copel announces filing of Form 20-F   [Apr-28-16 09:43AM  PR Newswire]
▶ Is INC Research Holdings Inc (INCR) A Good Stock To Buy?   [Dec-05  12:51AM  at Insider Monkey]
▶ Should You Buy Dril-Quip, Inc. (DRQ)?   [Dec-01  10:53AM  at Insider Monkey]
▶ Hedge Funds Are Crazy About Steelcase Inc. (SCS)   [Nov-25  07:40AM  at Insider Monkey]
▶ Copel - Filing of Form 20-F   [Apr-28  07:29PM  PR Newswire]
▶ IR 04/15 - Report 20 F - 04/28/2015   [07:04PM  at noodls]
Stock chart of ELP Financial statements of ELP
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.