Intrinsic value of TerraForm Global Cl A - GLBL

Previous Close

$5.03

  Intrinsic Value

$9.44

stock screener

  Rating & Target

str. buy

+88%

  Value-price divergence*

+124%

Previous close

$5.03

 
Intrinsic value

$9.44

 
Up/down potential

+88%

 
Rating

str. buy

 
Value-price divergence*

+124%

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

We calculate the intrinsic value of GLBL 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 2015), $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 0.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2015(a)
   2016
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  217.95
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  0
  198
  307
  458
  665
  938
  1,290
  1,732
  2,274
  2,926
  3,696
  4,589
  5,611
  6,763
  8,046
  9,461
  11,005
  12,677
  14,474
  16,392
  18,430
  20,584
  22,852
  25,232
  27,724
  30,326
  33,040
  35,866
  38,806
  41,863
  45,041
Variable operating expenses, $m
 
  122
  188
  281
  408
  575
  791
  1,062
  1,394
  1,794
  2,265
  2,813
  3,439
  4,145
  4,932
  5,800
  6,746
  7,771
  8,872
  10,049
  11,298
  12,618
  14,008
  15,467
  16,995
  18,590
  20,253
  21,986
  23,788
  25,662
  27,610
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
  350
  122
  188
  281
  408
  575
  791
  1,062
  1,394
  1,794
  2,265
  2,813
  3,439
  4,145
  4,932
  5,800
  6,746
  7,771
  8,872
  10,049
  11,298
  12,618
  14,008
  15,467
  16,995
  18,590
  20,253
  21,986
  23,788
  25,662
  27,610
Operating income, $m
  -226
  77
  119
  177
  257
  363
  499
  670
  880
  1,132
  1,430
  1,776
  2,171
  2,617
  3,114
  3,661
  4,259
  4,906
  5,601
  6,344
  7,132
  7,966
  8,844
  9,765
  10,729
  11,736
  12,786
  13,880
  15,018
  16,201
  17,431
EBITDA, $m
  -197
  123
  190
  285
  413
  582
  801
  1,075
  1,411
  1,816
  2,294
  2,848
  3,482
  4,197
  4,994
  5,872
  6,831
  7,868
  8,983
  10,174
  11,439
  12,775
  14,183
  15,660
  17,207
  18,822
  20,506
  22,260
  24,085
  25,983
  27,955
Interest expense (income), $m
  74
  78
  159
  278
  445
  672
  972
  1,358
  1,843
  2,438
  3,154
  3,999
  4,980
  6,101
  7,366
  8,775
  10,329
  12,024
  13,860
  15,832
  17,939
  20,176
  22,540
  25,030
  27,643
  30,379
  33,236
  36,215
  39,318
  42,546
  45,903
Earnings before tax, $m
  -366
  -1
  -41
  -101
  -187
  -309
  -473
  -688
  -963
  -1,306
  -1,724
  -2,223
  -2,809
  -3,484
  -4,252
  -5,114
  -6,069
  -7,118
  -8,258
  -9,488
  -10,806
  -12,210
  -13,697
  -15,265
  -16,914
  -18,643
  -20,450
  -22,335
  -24,300
  -26,345
  -28,472
Tax expense, $m
  5
  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
Net income, $m
  -252
  -1
  -41
  -101
  -187
  -309
  -473
  -688
  -963
  -1,306
  -1,724
  -2,223
  -2,809
  -3,484
  -4,252
  -5,114
  -6,069
  -7,118
  -8,258
  -9,488
  -10,806
  -12,210
  -13,697
  -15,265
  -16,914
  -18,643
  -20,450
  -22,335
  -24,300
  -26,345
  -28,472

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  922
  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
  2,687
  3,674
  5,676
  8,489
  12,317
  17,378
  23,891
  32,068
  42,108
  54,182
  68,437
  84,983
  103,899
  125,234
  149,004
  175,202
  203,802
  234,762
  268,034
  303,562
  341,294
  381,180
  423,179
  467,258
  513,398
  561,592
  611,845
  664,180
  718,631
  775,248
  834,094
Adjusted assets (=assets-cash), $m
  1,765
  3,674
  5,676
  8,489
  12,317
  17,378
  23,891
  32,068
  42,108
  54,182
  68,437
  84,983
  103,899
  125,234
  149,004
  175,202
  203,802
  234,762
  268,034
  303,562
  341,294
  381,180
  423,179
  467,258
  513,398
  561,592
  611,845
  664,180
  718,631
  775,248
  834,094
Revenue / Adjusted assets
  0.000
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
Average production assets, $m
  832
  1,330
  2,056
  3,074
  4,460
  6,293
  8,651
  11,613
  15,248
  19,621
  24,783
  30,774
  37,624
  45,350
  53,958
  63,445
  73,801
  85,013
  97,062
  109,927
  123,591
  138,035
  153,243
  169,205
  185,914
  203,366
  221,564
  240,516
  260,234
  280,736
  302,045
Working capital, $m
  709
  99
  153
  229
  333
  469
  645
  866
  1,137
  1,463
  1,848
  2,295
  2,805
  3,381
  4,023
  4,730
  5,503
  6,339
  7,237
  8,196
  9,215
  10,292
  11,426
  12,616
  13,862
  15,163
  16,520
  17,933
  19,403
  20,932
  22,521
Total debt, $m
  1,272
  1,943
  3,391
  5,425
  8,192
  11,851
  16,560
  22,472
  29,731
  38,461
  48,767
  60,729
  74,406
  89,831
  107,017
  125,958
  146,636
  169,020
  193,076
  218,763
  246,043
  274,880
  305,245
  337,115
  370,474
  405,318
  441,651
  479,489
  518,857
  559,791
  602,337
Total liabilities, $m
  1,985
  2,656
  4,104
  6,138
  8,905
  12,564
  17,273
  23,185
  30,444
  39,174
  49,480
  61,442
  75,119
  90,544
  107,730
  126,671
  147,349
  169,733
  193,789
  219,476
  246,756
  275,593
  305,958
  337,828
  371,187
  406,031
  442,364
  480,202
  519,570
  560,504
  603,050
Total equity, $m
  702
  1,018
  1,572
  2,351
  3,412
  4,814
  6,618
  8,883
  11,664
  15,008
  18,957
  23,540
  28,780
  34,690
  41,274
  48,531
  56,453
  65,029
  74,245
  84,087
  94,538
  105,587
  117,221
  129,431
  142,211
  155,561
  169,481
  183,978
  199,061
  214,744
  231,044
Total liabilities and equity, $m
  2,687
  3,674
  5,676
  8,489
  12,317
  17,378
  23,891
  32,068
  42,108
  54,182
  68,437
  84,982
  103,899
  125,234
  149,004
  175,202
  203,802
  234,762
  268,034
  303,563
  341,294
  381,180
  423,179
  467,259
  513,398
  561,592
  611,845
  664,180
  718,631
  775,248
  834,094
Debt-to-equity ratio
  1.812
  1.910
  2.160
  2.310
  2.400
  2.460
  2.500
  2.530
  2.550
  2.560
  2.570
  2.580
  2.590
  2.590
  2.590
  2.600
  2.600
  2.600
  2.600
  2.600
  2.600
  2.600
  2.600
  2.600
  2.610
  2.610
  2.610
  2.610
  2.610
  2.610
  2.610
Adjusted equity ratio
  -0.125
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277
  0.277

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -252
  -1
  -41
  -101
  -187
  -309
  -473
  -688
  -963
  -1,306
  -1,724
  -2,223
  -2,809
  -3,484
  -4,252
  -5,114
  -6,069
  -7,118
  -8,258
  -9,488
  -10,806
  -12,210
  -13,697
  -15,265
  -16,914
  -18,643
  -20,450
  -22,335
  -24,300
  -26,345
  -28,472
Depreciation, amort., depletion, $m
  29
  46
  72
  107
  155
  219
  301
  405
  531
  684
  864
  1,072
  1,311
  1,580
  1,880
  2,211
  2,571
  2,962
  3,382
  3,830
  4,306
  4,810
  5,339
  5,896
  6,478
  7,086
  7,720
  8,380
  9,067
  9,782
  10,524
Funds from operations, $m
  132
  45
  31
  6
  -32
  -89
  -171
  -283
  -431
  -622
  -860
  -1,151
  -1,498
  -1,904
  -2,372
  -2,903
  -3,498
  -4,156
  -4,876
  -5,658
  -6,500
  -7,400
  -8,357
  -9,370
  -10,437
  -11,557
  -12,730
  -13,955
  -15,233
  -16,563
  -17,948
Change in working capital, $m
  122
  37
  54
  76
  103
  137
  176
  221
  271
  326
  385
  447
  511
  576
  642
  707
  772
  836
  898
  959
  1,019
  1,077
  1,134
  1,190
  1,246
  1,301
  1,357
  1,413
  1,470
  1,529
  1,589
Cash from operations, $m
  10
  8
  -23
  -69
  -135
  -226
  -347
  -504
  -703
  -948
  -1,245
  -1,597
  -2,008
  -2,480
  -3,014
  -3,611
  -4,270
  -4,992
  -5,775
  -6,617
  -7,519
  -8,477
  -9,491
  -10,560
  -11,682
  -12,858
  -14,087
  -15,368
  -16,703
  -18,092
  -19,537
Maintenance CAPEX, $m
  0
  -29
  -46
  -72
  -107
  -155
  -219
  -301
  -405
  -531
  -684
  -864
  -1,072
  -1,311
  -1,580
  -1,880
  -2,211
  -2,571
  -2,962
  -3,382
  -3,830
  -4,306
  -4,810
  -5,339
  -5,896
  -6,478
  -7,086
  -7,720
  -8,380
  -9,067
  -9,782
New CAPEX, $m
  -94
  -499
  -725
  -1,019
  -1,386
  -1,833
  -2,358
  -2,961
  -3,636
  -4,373
  -5,162
  -5,992
  -6,850
  -7,726
  -8,608
  -9,487
  -10,357
  -11,212
  -12,048
  -12,866
  -13,664
  -14,444
  -15,209
  -15,962
  -16,708
  -17,452
  -18,198
  -18,952
  -19,718
  -20,502
  -21,309
Cash from investing activities, $m
  -752
  -528
  -771
  -1,091
  -1,493
  -1,988
  -2,577
  -3,262
  -4,041
  -4,904
  -5,846
  -6,856
  -7,922
  -9,037
  -10,188
  -11,367
  -12,568
  -13,783
  -15,010
  -16,248
  -17,494
  -18,750
  -20,019
  -21,301
  -22,604
  -23,930
  -25,284
  -26,672
  -28,098
  -29,569
  -31,091
Free cash flow, $m
  -742
  -520
  -795
  -1,160
  -1,629
  -2,214
  -2,925
  -3,767
  -4,743
  -5,852
  -7,090
  -8,453
  -9,931
  -11,517
  -13,202
  -14,978
  -16,838
  -18,775
  -20,785
  -22,865
  -25,012
  -27,227
  -29,509
  -31,862
  -34,286
  -36,788
  -39,371
  -42,040
  -44,801
  -47,662
  -50,628
Issuance/(repayment) of debt, $m
  353
  991
  1,448
  2,034
  2,768
  3,659
  4,709
  5,912
  7,258
  8,730
  10,306
  11,963
  13,677
  15,425
  17,185
  18,941
  20,678
  22,385
  24,055
  25,687
  27,280
  28,838
  30,365
  31,869
  33,359
  34,844
  36,333
  37,838
  39,368
  40,934
  42,545
Issuance/(repurchase) of shares, $m
  0
  381
  595
  880
  1,248
  1,710
  2,277
  2,953
  3,744
  4,650
  5,672
  6,806
  8,048
  9,394
  10,836
  12,371
  13,992
  15,694
  17,475
  19,330
  21,258
  23,258
  25,330
  27,475
  29,695
  31,992
  34,370
  36,832
  39,383
  42,028
  44,772
Cash from financing (excl. dividends), $m  
  1,557
  1,372
  2,043
  2,914
  4,016
  5,369
  6,986
  8,865
  11,002
  13,380
  15,978
  18,769
  21,725
  24,819
  28,021
  31,312
  34,670
  38,079
  41,530
  45,017
  48,538
  52,096
  55,695
  59,344
  63,054
  66,836
  70,703
  74,670
  78,751
  82,962
  87,317
Total cash flow (excl. dividends), $m
  792
  852
  1,248
  1,754
  2,387
  3,155
  4,061
  5,099
  6,259
  7,528
  8,887
  10,316
  11,794
  13,302
  14,820
  16,334
  17,832
  19,304
  20,745
  22,152
  23,526
  24,869
  26,186
  27,483
  28,768
  30,048
  31,333
  32,630
  33,950
  35,300
  36,690
Retained Cash Flow (-), $m
  -653
  -381
  -595
  -880
  -1,248
  -1,710
  -2,277
  -2,953
  -3,744
  -4,650
  -5,672
  -6,806
  -8,048
  -9,394
  -10,836
  -12,371
  -13,992
  -15,694
  -17,475
  -19,330
  -21,258
  -23,258
  -25,330
  -27,475
  -29,695
  -31,992
  -34,370
  -36,832
  -39,383
  -42,028
  -44,772
Prev. year cash balance distribution, $m
 
  64
  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
 
  535
  653
  874
  1,139
  1,445
  1,784
  2,146
  2,516
  2,878
  3,215
  3,510
  3,746
  3,908
  3,984
  3,963
  3,840
  3,610
  3,270
  2,822
  2,268
  1,611
  856
  8
  -927
  -1,944
  -3,037
  -4,202
  -5,433
  -6,728
  -8,082
Discount rate, %
 
  7.00
  7.35
  7.72
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.86
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.70
  24.89
  26.13
  27.44
  28.81
PV of cash for distribution, $m
 
  500
  567
  699
  834
  961
  1,068
  1,145
  1,187
  1,187
  1,147
  1,070
  964
  838
  702
  566
  437
  322
  225
  147
  87
  45
  17
  0
  -9
  -12
  -12
  -10
  -8
  -6
  -4
Current shareholders' claim on cash, %
  100
  67.4
  45.8
  31.5
  22.1
  15.7
  11.4
  8.3
  6.2
  4.7
  3.6
  2.8
  2.2
  1.7
  1.4
  1.1
  0.9
  0.7
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1

TerraForm Global, Inc. owns and operates renewable energy power plants. As of October 31, 2016, its portfolio consisted of solar and wind power plants located in Brazil, China, India, Malaysia, South Africa, Thailand, and Uruguay with an aggregate net capacity of 916.4 megawatts. The company also generates electricity through hydro-electric projects. It serves utility, commercial, industrial, and governmental customers. The company was founded in 2014 and is headquartered in Bethesda, Maryland. TerraForm Global, Inc. is a subsidiary of SunEdison, Inc.

FINANCIAL RATIOS  of  TerraForm Global Cl A (GLBL)

Valuation Ratios
P/E Ratio -3.5
Price to Sales 7.1
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 88.5
Price to Free Cash Flow -10.5
Growth Rates
Sales Growth Rate 217.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -50.5%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 3
Current Ratio 0.2
LT Debt to Equity 135.6%
Total Debt to Equity 181.2%
Interest Coverage -4
Management Effectiveness
Return On Assets -10.5%
Ret/ On Assets - 3 Yr. Avg. -0.6%
Return On Total Capital -19.8%
Ret/ On T. Cap. - 3 Yr. Avg. -7.6%
Return On Equity -67.1%
Return On Equity - 3 Yr. Avg. -27.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin -212.1%
EBITDA Margin - 3 Yr. Avg. -32.5%
Operating Margin -182.3%
Oper. Margin - 3 Yr. Avg. -32.8%
Pre-Tax Margin -295.2%
Pre-Tax Margin - 3 Yr. Avg. -107%
Net Profit Margin -203.2%
Net Profit Margin - 3 Yr. Avg. -75%
Effective Tax Rate -1.4%
Eff/ Tax Rate - 3 Yr. Avg. -6%
Payout Ratio -7.9%

GLBL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GLBL stock intrinsic value calculation we used $124 million for the last fiscal year's total revenue generated by TerraForm Global Cl A. The default revenue input number comes from 2015 income statement of TerraForm Global Cl A. 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 GLBL stock valuation model: a) initial revenue growth rate of 60% 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 7%, whose default value for GLBL is calculated based on our internal credit rating of TerraForm Global Cl A, 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 TerraForm Global Cl A.
    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 GLBL stock the variable cost ratio is equal to 61.3%.

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 GLBL 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 8.2% for TerraForm Global Cl A.

Corporate tax rate of 27% is the nominal tax rate for TerraForm Global Cl A. 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 GLBL 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 GLBL are equal to 670.6%.

Life of production assets of 28.7 years is the average useful life of capital assets used in TerraForm Global Cl A 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 GLBL is equal to 50%. 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 - $702 million for TerraForm Global Cl A - 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 172.588 million for TerraForm Global Cl A 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 TerraForm Global Cl A at the current share price and the inputted number of shares is $0.9 billion.

RELATED COMPANIES Price Int.Val. Rating
ORA Ormat Technolo 55.61 77.59  buy
TERP TerraForm Powe 13.11 2.07  str.sell
PEGI Pattern Energy 23.76 2.86  str.sell
AES AES 11.01 2.55  str.sell

COMPANY NEWS

▶ [$$] Corrigan's Take: SunEdison Settlement Exempts Whistleblower Lawsuits   [Jun-29-17 04:25PM  The Wall Street Journal]
▶ New Strong Sell Stocks for June 20th   [Jun-20-17 10:31AM  Zacks]
▶ TerraForm Global Announces Receipt of Nasdaq Letter   [May-16-17 08:30AM  GlobeNewswire]
▶ Why TerraForm Global Inc Stock Jumped 10% in March   [Apr-11-17 07:48AM  Motley Fool]
▶ [$$] SunEdison Asks for $640 Million in New Financing   [Apr-06-17 03:25PM  The Wall Street Journal]
▶ [$$] SunEdison Settles with TerraForm Power, TerraForm Global   [Mar-13-17 07:19AM  The Wall Street Journal]
▶ Brookfield to take control of SunEdison yieldcos   [08:30AM  at bizjournals.com]
▶ [$$] Brookfield to Buy TerraForm Global   [08:02AM  at The Wall Street Journal]
▶ Brookfield to Acquire TerraForm Global   [06:55AM  GlobeNewswire]
▶ TerraForm Power wins $86 million in Canada project financing   [Mar-03-17 08:45AM  at bizjournals.com]
▶ [$$] Brickley's Take: SunEdison Creditors Brace for Crucial Week on Plan   [Mar-02-17 12:01PM  at The Wall Street Journal]
▶ Better Buy: TerraForm Global, Inc. vs. Trina Solar   [Jan-25-17 08:58AM  at Motley Fool]
▶ Why TerraForm Global Inc.'s Shares Popped 11% Today   [Jan-23-17 02:17PM  at Motley Fool]
▶ Will 2017 Be TerraForm Global's Worst Year Yet?   [Jan-12-17 08:24AM  at Motley Fool]
▶ TerraForm Global's Biggest Failures in 2016   [Dec-30-16 01:54PM  at Motley Fool]
▶ [$$] SunEdison Has Settlement Offer From TerraForm Power   [03:14PM  at The Wall Street Journal]
▶ Don't Buy the Hype: TerraForm Global Is a Dud   [11:07AM  at Motley Fool]
▶ [$$] SunEdison Considers $42.5 Million Sale of Wind Projects   [Dec-19-16 03:00PM  at The Wall Street Journal]
▶ Terraform Global Is Underappreciated and Undervalued   [Dec-17-16 08:21AM  at Motley Fool]
▶ [$$] Randles's Take: SunEdison Creditors Eye TerraForm Lawsuit   [Dec-16-16 12:05PM  at The Wall Street Journal]
▶ Is TerraForm Global Inc (GLBL) A Good Stock To Buy?   [Dec-05-16 04:49AM  at Insider Monkey]
▶ Better Buy: TerraForm Power Inc vs. TerraForm Global Inc   [Dec-01-16 11:18AM  at Motley Fool]
▶ [$$] SunEdison Warns Lawsuit Threats Jeopardize TerraForm Sales   [Nov-30-16 02:38PM  at The Wall Street Journal]
Stock chart of GLBL Financial statements of GLBL
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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