Intrinsic value of Stantec - STN

Previous Close

$26.80

  Intrinsic Value

$142.55

stock screener

  Rating & Target

str. buy

+432%

  Value-price divergence*

0%

Previous close

$26.80

 
Intrinsic value

$142.55

 
Up/down potential

+432%

 
Rating

str. buy

 
Value-price divergence*

0%

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

We calculate the intrinsic value of STN 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 3.0

 

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, %
  30.51
  39.10
  35.69
  32.62
  29.86
  27.37
  25.14
  23.12
  21.31
  19.68
  18.21
  16.89
  15.70
  14.63
  13.67
  12.80
  12.02
  11.32
  10.69
  10.12
  9.61
  9.15
  8.73
  8.36
  8.02
  7.72
  7.45
  7.20
  6.98
  6.78
  6.61
Revenue, $m
  2,293
  3,190
  4,328
  5,740
  7,454
  9,494
  11,880
  14,627
  17,744
  21,236
  25,103
  29,343
  33,950
  38,918
  44,237
  49,899
  55,898
  62,225
  68,875
  75,844
  83,129
  90,732
  98,654
  106,900
  115,476
  124,390
  133,655
  143,282
  153,288
  163,688
  174,501
Variable operating expenses, $m
 
  2,846
  3,814
  5,014
  6,471
  8,205
  10,233
  12,568
  15,218
  18,186
  21,473
  24,942
  28,858
  33,080
  37,601
  42,414
  47,513
  52,891
  58,543
  64,467
  70,660
  77,122
  83,856
  90,864
  98,154
  105,731
  113,606
  121,789
  130,294
  139,134
  148,325
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
  2,160
  2,846
  3,814
  5,014
  6,471
  8,205
  10,233
  12,568
  15,218
  18,186
  21,473
  24,942
  28,858
  33,080
  37,601
  42,414
  47,513
  52,891
  58,543
  64,467
  70,660
  77,122
  83,856
  90,864
  98,154
  105,731
  113,606
  121,789
  130,294
  139,134
  148,325
Operating income, $m
  133
  343
  514
  726
  983
  1,289
  1,647
  2,059
  2,526
  3,050
  3,630
  4,402
  5,093
  5,838
  6,636
  7,485
  8,385
  9,334
  10,332
  11,377
  12,470
  13,610
  14,799
  16,036
  17,322
  18,659
  20,049
  21,493
  22,994
  24,554
  26,176
EBITDA, $m
  133
  528
  716
  950
  1,234
  1,571
  1,966
  2,421
  2,937
  3,515
  4,155
  4,856
  5,619
  6,441
  7,321
  8,259
  9,251
  10,299
  11,399
  12,553
  13,758
  15,017
  16,328
  17,693
  19,112
  20,587
  22,121
  23,714
  25,370
  27,091
  28,881
Interest expense (income), $m
  -28
  1
  23
  52
  87
  130
  181
  241
  309
  387
  475
  572
  678
  793
  917
  1,050
  1,192
  1,342
  1,501
  1,667
  1,841
  2,024
  2,214
  2,412
  2,619
  2,833
  3,056
  3,288
  3,529
  3,780
  4,040
Earnings before tax, $m
  134
  342
  491
  674
  896
  1,159
  1,466
  1,818
  2,217
  2,663
  3,155
  3,830
  4,415
  5,045
  5,718
  6,435
  7,193
  7,992
  8,831
  9,710
  10,628
  11,587
  12,585
  13,623
  14,703
  15,826
  16,993
  18,205
  19,465
  20,774
  22,136
Tax expense, $m
  37
  92
  132
  182
  242
  313
  396
  491
  599
  719
  852
  1,034
  1,192
  1,362
  1,544
  1,737
  1,942
  2,158
  2,384
  2,622
  2,870
  3,128
  3,398
  3,678
  3,970
  4,273
  4,588
  4,915
  5,256
  5,609
  5,977
Net income, $m
  97
  250
  358
  492
  654
  846
  1,070
  1,327
  1,618
  1,944
  2,303
  2,796
  3,223
  3,683
  4,174
  4,697
  5,251
  5,834
  6,447
  7,088
  7,759
  8,458
  9,187
  9,945
  10,733
  11,553
  12,405
  13,290
  14,209
  15,165
  16,159

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  172
  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
  3,171
  4,169
  5,657
  7,503
  9,743
  12,410
  15,530
  19,120
  23,195
  27,759
  32,815
  38,357
  44,380
  50,873
  57,826
  65,228
  73,069
  81,340
  90,032
  99,142
  108,666
  118,604
  128,960
  139,738
  150,948
  162,602
  174,712
  187,297
  200,376
  213,971
  228,106
Adjusted assets (=assets-cash), $m
  2,999
  4,169
  5,657
  7,503
  9,743
  12,410
  15,530
  19,120
  23,195
  27,759
  32,815
  38,357
  44,380
  50,873
  57,826
  65,228
  73,069
  81,340
  90,032
  99,142
  108,666
  118,604
  128,960
  139,738
  150,948
  162,602
  174,712
  187,297
  200,376
  213,971
  228,106
Revenue / Adjusted assets
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
  0.765
Average production assets, $m
  355
  494
  671
  890
  1,155
  1,472
  1,841
  2,267
  2,750
  3,292
  3,891
  4,548
  5,262
  6,032
  6,857
  7,734
  8,664
  9,645
  10,676
  11,756
  12,885
  14,063
  15,291
  16,569
  17,899
  19,281
  20,717
  22,209
  23,760
  25,372
  27,048
Working capital, $m
  377
  383
  519
  689
  894
  1,139
  1,426
  1,755
  2,129
  2,548
  3,012
  3,521
  4,074
  4,670
  5,308
  5,988
  6,708
  7,467
  8,265
  9,101
  9,976
  10,888
  11,839
  12,828
  13,857
  14,927
  16,039
  17,194
  18,395
  19,643
  20,940
Total debt, $m
  92
  664
  1,478
  2,487
  3,713
  5,171
  6,878
  8,842
  11,071
  13,567
  16,333
  19,364
  22,659
  26,210
  30,014
  34,063
  38,352
  42,876
  47,631
  52,614
  57,823
  63,259
  68,924
  74,820
  80,952
  87,326
  93,951
  100,835
  107,989
  115,425
  123,157
Total liabilities, $m
  1,709
  2,281
  3,095
  4,104
  5,330
  6,788
  8,495
  10,459
  12,688
  15,184
  17,950
  20,981
  24,276
  27,827
  31,631
  35,680
  39,969
  44,493
  49,248
  54,231
  59,440
  64,876
  70,541
  76,437
  82,569
  88,943
  95,568
  102,452
  109,606
  117,042
  124,774
Total equity, $m
  1,462
  1,889
  2,563
  3,399
  4,414
  5,622
  7,035
  8,662
  10,507
  12,575
  14,865
  17,376
  20,104
  23,045
  26,195
  29,548
  33,100
  36,847
  40,785
  44,911
  49,226
  53,728
  58,419
  63,301
  68,380
  73,659
  79,145
  84,846
  90,770
  96,929
  103,332
Total liabilities and equity, $m
  3,171
  4,170
  5,658
  7,503
  9,744
  12,410
  15,530
  19,121
  23,195
  27,759
  32,815
  38,357
  44,380
  50,872
  57,826
  65,228
  73,069
  81,340
  90,033
  99,142
  108,666
  118,604
  128,960
  139,738
  150,949
  162,602
  174,713
  187,298
  200,376
  213,971
  228,106
Debt-to-equity ratio
  0.063
  0.350
  0.580
  0.730
  0.840
  0.920
  0.980
  1.020
  1.050
  1.080
  1.100
  1.110
  1.130
  1.140
  1.150
  1.150
  1.160
  1.160
  1.170
  1.170
  1.170
  1.180
  1.180
  1.180
  1.180
  1.190
  1.190
  1.190
  1.190
  1.190
  1.190
Adjusted equity ratio
  0.430
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  97
  250
  358
  492
  654
  846
  1,070
  1,327
  1,618
  1,944
  2,303
  2,796
  3,223
  3,683
  4,174
  4,697
  5,251
  5,834
  6,447
  7,088
  7,759
  8,458
  9,187
  9,945
  10,733
  11,553
  12,405
  13,290
  14,209
  15,165
  16,159
Depreciation, amort., depletion, $m
  0
  185
  202
  224
  251
  282
  319
  362
  410
  464
  524
  455
  526
  603
  686
  773
  866
  964
  1,068
  1,176
  1,289
  1,406
  1,529
  1,657
  1,790
  1,928
  2,072
  2,221
  2,376
  2,537
  2,705
Funds from operations, $m
  -1,410
  435
  561
  716
  905
  1,128
  1,389
  1,689
  2,029
  2,408
  2,828
  3,251
  3,749
  4,286
  4,860
  5,471
  6,117
  6,798
  7,514
  8,264
  9,047
  9,865
  10,716
  11,602
  12,523
  13,481
  14,476
  15,510
  16,585
  17,703
  18,864
Change in working capital, $m
  -1,621
  108
  137
  169
  206
  245
  286
  330
  374
  419
  464
  509
  553
  596
  638
  680
  720
  759
  798
  836
  874
  912
  951
  989
  1,029
  1,070
  1,112
  1,155
  1,201
  1,248
  1,298
Cash from operations, $m
  211
  327
  424
  547
  699
  884
  1,103
  1,360
  1,655
  1,989
  2,364
  2,742
  3,196
  3,690
  4,222
  4,791
  5,397
  6,039
  6,716
  7,428
  8,173
  8,952
  9,765
  10,612
  11,494
  12,411
  13,364
  14,355
  15,385
  16,455
  17,567
Maintenance CAPEX, $m
  0
  -36
  -49
  -67
  -89
  -116
  -147
  -184
  -227
  -275
  -329
  -389
  -455
  -526
  -603
  -686
  -773
  -866
  -964
  -1,068
  -1,176
  -1,289
  -1,406
  -1,529
  -1,657
  -1,790
  -1,928
  -2,072
  -2,221
  -2,376
  -2,537
New CAPEX, $m
  -43
  -139
  -176
  -219
  -266
  -316
  -370
  -426
  -483
  -541
  -599
  -657
  -714
  -770
  -824
  -878
  -930
  -981
  -1,031
  -1,080
  -1,129
  -1,178
  -1,228
  -1,278
  -1,329
  -1,382
  -1,436
  -1,492
  -1,551
  -1,612
  -1,676
Cash from investing activities, $m
  -841
  -175
  -225
  -286
  -355
  -432
  -517
  -610
  -710
  -816
  -928
  -1,046
  -1,169
  -1,296
  -1,427
  -1,564
  -1,703
  -1,847
  -1,995
  -2,148
  -2,305
  -2,467
  -2,634
  -2,807
  -2,986
  -3,172
  -3,364
  -3,564
  -3,772
  -3,988
  -4,213
Free cash flow, $m
  -630
  152
  198
  261
  344
  452
  586
  750
  945
  1,173
  1,435
  1,696
  2,027
  2,394
  2,794
  3,228
  3,694
  4,192
  4,721
  5,280
  5,868
  6,485
  7,131
  7,805
  8,508
  9,240
  10,000
  10,791
  11,613
  12,467
  13,353
Issuance/(repayment) of debt, $m
  360
  642
  814
  1,009
  1,225
  1,459
  1,706
  1,964
  2,229
  2,497
  2,765
  3,032
  3,294
  3,552
  3,803
  4,049
  4,289
  4,524
  4,755
  4,983
  5,210
  5,436
  5,664
  5,896
  6,132
  6,374
  6,625
  6,884
  7,154
  7,436
  7,732
Issuance/(repurchase) of shares, $m
  437
  279
  316
  344
  361
  362
  343
  299
  227
  124
  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  
  771
  921
  1,130
  1,353
  1,586
  1,821
  2,049
  2,263
  2,456
  2,621
  2,765
  3,032
  3,294
  3,552
  3,803
  4,049
  4,289
  4,524
  4,755
  4,983
  5,210
  5,436
  5,664
  5,896
  6,132
  6,374
  6,625
  6,884
  7,154
  7,436
  7,732
Total cash flow (excl. dividends), $m
  140
  1,073
  1,328
  1,614
  1,931
  2,273
  2,635
  3,013
  3,401
  3,794
  4,200
  4,727
  5,322
  5,945
  6,597
  7,277
  7,983
  8,716
  9,476
  10,263
  11,078
  11,922
  12,795
  13,701
  14,640
  15,614
  16,625
  17,675
  18,767
  19,903
  21,085
Retained Cash Flow (-), $m
  -483
  -529
  -674
  -836
  -1,015
  -1,208
  -1,413
  -1,627
  -1,846
  -2,068
  -2,290
  -2,511
  -2,728
  -2,941
  -3,150
  -3,353
  -3,552
  -3,747
  -3,938
  -4,127
  -4,314
  -4,502
  -4,691
  -4,883
  -5,078
  -5,279
  -5,486
  -5,701
  -5,925
  -6,158
  -6,403
Prev. year cash balance distribution, $m
 
  102
  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
 
  646
  654
  778
  916
  1,065
  1,222
  1,387
  1,555
  1,726
  1,910
  2,217
  2,593
  3,004
  3,448
  3,924
  4,431
  4,970
  5,538
  6,136
  6,763
  7,419
  8,104
  8,818
  9,562
  10,335
  11,139
  11,974
  12,842
  13,744
  14,682
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  619
  599
  677
  754
  825
  887
  937
  972
  991
  1,002
  1,053
  1,107
  1,142
  1,157
  1,152
  1,126
  1,081
  1,020
  945
  859
  767
  672
  578
  487
  402
  325
  257
  199
  150
  111
Current shareholders' claim on cash, %
  100
  91.0
  84.1
  79.0
  75.1
  72.3
  70.2
  68.8
  67.9
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5
  67.5

Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. It operates through four segments: Consulting Services – Canada, Consulting Services – United States, Consulting Services – Global, and Construction Services. The company provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management, and project economics; and construction management services. It undertakes commercial, healthcare, education, industrial, airports and aviation, civic, science and technology, waterpower and dam, power, oil and gas, mining, water, building, power transportation, community development, and transportation projects. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

FINANCIAL RATIOS  of  Stantec (STN)

Valuation Ratios
P/E Ratio 31.5
Price to Sales 1.3
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 14.5
Price to Free Cash Flow 18.2
Growth Rates
Sales Growth Rate 30.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 53.6%
Cap. Spend. - 3 Yr. Gr. Rate 2%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 1.5%
Total Debt to Equity 6.3%
Interest Coverage -4
Management Effectiveness
Return On Assets 3.1%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital 7.3%
Ret/ On T. Cap. - 3 Yr. Avg. 11.7%
Return On Equity 7.9%
Return On Equity - 3 Yr. Avg. 12.5%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 54.1%
Gross Margin - 3 Yr. Avg. 54.5%
EBITDA Margin 4.6%
EBITDA Margin - 3 Yr. Avg. 7.7%
Operating Margin 5.8%
Oper. Margin - 3 Yr. Avg. 8.5%
Pre-Tax Margin 5.8%
Pre-Tax Margin - 3 Yr. Avg. 8.5%
Net Profit Margin 4.2%
Net Profit Margin - 3 Yr. Avg. 6.3%
Effective Tax Rate 27.6%
Eff/ Tax Rate - 3 Yr. Avg. 26.6%
Payout Ratio 35.1%

STN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the STN stock intrinsic value calculation we used $2293 million for the last fiscal year's total revenue generated by Stantec. The default revenue input number comes from 2016 income statement of Stantec. 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 STN stock valuation model: a) initial revenue growth rate of 39.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for STN is calculated based on our internal credit rating of Stantec, 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 Stantec.
    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 STN stock the variable cost ratio is equal to 90.9%.

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 STN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Stantec.

Corporate tax rate of 27% is the nominal tax rate for Stantec. 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 STN 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 STN are equal to 15.5%.

Life of production assets of 10 years is the average useful life of capital assets used in Stantec 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 STN is equal to 12%. 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 - $1462 million for Stantec - 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 112.595 million for Stantec 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 Stantec at the current share price and the inputted number of shares is $3.0 billion.

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PWR Quanta Service 34.27 2.93  str.sell

COMPANY NEWS

▶ Stantec tops 2Q profit forecasts   [Aug-09-17 05:13PM  Associated Press]
▶ Texas A&M investing $46M for new San Antonio STEM building (slideshow)   [Jul-06-17 01:14PM  American City Business Journals]
▶ Stantec to Acquire RNL Design   [Jun-22-17 06:45AM  Marketwired]
▶ ETFs with exposure to Stantec, Inc. : June 20, 2017   [Jun-20-17 03:16PM  Capital Cube]
▶ Stantec 2017 Annual Meeting of Shareholders Results   [May-12-17 08:45AM  Marketwired]
▶ Stantec reports 1Q loss   [May-11-17 07:22AM  Associated Press]
▶ Aviation Authority votes on Phase 2 funding for Tampa International expansion (Video)   [May-04-17 02:45PM  American City Business Journals]
▶ International architecture, engineering firm expands to Hawaii   [Mar-21-17 06:32PM  at bizjournals.com]
▶ International architecture, engineering firm expands to Hawaii   [06:32PM  American City Business Journals]
▶ Stantec Signs Agreement to Sell Innovyze   [06:45AM  Marketwired]
▶ Stantec misses 4Q profit forecasts   [Feb-23-17 11:37AM  Associated Press]
▶ Should You Buy Pan American Silver Corp. (USA) (PAAS)?   [Dec-07-16 05:12PM  at Insider Monkey]
▶ Brooklyn Village development team hosting additional meetings   [Oct-17-16 01:05PM  at bizjournals.com]
▶ Balfour Beatty wins $110M project with Highland Park ISD   [Oct-04-16 01:20PM  at bizjournals.com]
▶ Diverse mix of retail anticipated to activate Brooklyn Village   [Sep-27-16 03:45PM  at bizjournals.com]
▶ Stantec to Hold Investor Day on June 2   [May-26-16 09:00AM  Marketwired]
▶ Stantec 2016 Annual Meeting of Shareholders Results   [May-13-16 09:00AM  Marketwired]
▶ Brandywine looks to pop Austin sky with out-of-box office design   [May-11-16 03:55PM  at bizjournals.com]
▶ Job growth fueling development of 550 luxury apartments at Craig Ranch in McKinney   [May-10-16 11:25AM  at American City Business Journals]
▶ Stantec Completes Acquisition of MWH Global   [May-06-16 08:35AM  Marketwired]
▶ Sonoma's $800 million casino and resort underway on 200-room hotel expansion   [Apr-27-16 03:06PM  at American City Business Journals]
▶ MWH Global to be acquired in $795 million deal   [06:01PM  at bizjournals.com]
Stock chart of STN Financial statements of STN
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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