Intrinsic value of TerraForm Power - TERP

Previous Close

$11.56

  Intrinsic Value

$2.21

stock screener

  Rating & Target

str. sell

-81%

  Value-price divergence*

-93%

Previous close

$11.56

 
Intrinsic value

$2.21

 
Up/down potential

-81%

 
Rating

str. sell

 
Value-price divergence*

-93%

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

We calculate the intrinsic value of TERP 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 1.6

 

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, %
  39.36
  27.40
  25.16
  23.14
  21.33
  19.70
  18.23
  16.90
  15.71
  14.64
  13.68
  12.81
  12.03
  11.33
  10.69
  10.12
  9.61
  9.15
  8.74
  8.36
  8.03
  7.72
  7.45
  7.21
  6.99
  6.79
  6.61
  6.45
  6.30
  6.17
  6.06
Revenue, $m
  655
  834
  1,044
  1,286
  1,560
  1,868
  2,208
  2,582
  2,987
  3,425
  3,893
  4,392
  4,920
  5,477
  6,063
  6,677
  7,319
  7,988
  8,686
  9,413
  10,168
  10,953
  11,770
  12,618
  13,499
  14,415
  15,368
  16,359
  17,390
  18,463
  19,581
Variable operating expenses, $m
 
  392
  491
  604
  733
  878
  1,038
  1,213
  1,404
  1,610
  1,830
  2,064
  2,312
  2,574
  2,850
  3,138
  3,440
  3,755
  4,083
  4,424
  4,779
  5,148
  5,532
  5,930
  6,345
  6,775
  7,223
  7,689
  8,173
  8,678
  9,203
Fixed operating expenses, $m
 
  272
  278
  285
  293
  300
  307
  315
  323
  331
  339
  348
  356
  365
  374
  384
  393
  403
  413
  424
  434
  445
  456
  468
  479
  491
  504
  516
  529
  542
  556
Total operating expenses, $m
  567
  664
  769
  889
  1,026
  1,178
  1,345
  1,528
  1,727
  1,941
  2,169
  2,412
  2,668
  2,939
  3,224
  3,522
  3,833
  4,158
  4,496
  4,848
  5,213
  5,593
  5,988
  6,398
  6,824
  7,266
  7,727
  8,205
  8,702
  9,220
  9,759
Operating income, $m
  88
  171
  275
  396
  535
  690
  863
  1,053
  1,260
  1,484
  1,724
  1,980
  2,251
  2,538
  2,839
  3,155
  3,486
  3,831
  4,190
  4,565
  4,955
  5,360
  5,782
  6,220
  6,675
  7,149
  7,641
  8,154
  8,687
  9,243
  9,822
EBITDA, $m
  331
  479
  661
  872
  1,111
  1,380
  1,679
  2,007
  2,364
  2,750
  3,163
  3,603
  4,069
  4,562
  5,079
  5,622
  6,190
  6,783
  7,400
  8,043
  8,712
  9,408
  10,131
  10,882
  11,663
  12,476
  13,320
  14,199
  15,113
  16,066
  17,058
Interest expense (income), $m
  257
  203
  299
  412
  542
  689
  855
  1,038
  1,239
  1,457
  1,692
  1,945
  2,213
  2,497
  2,797
  3,112
  3,442
  3,788
  4,148
  4,524
  4,914
  5,321
  5,743
  6,182
  6,639
  7,113
  7,606
  8,118
  8,652
  9,206
  9,784
Earnings before tax, $m
  -241
  -33
  -24
  -16
  -7
  1
  8
  15
  21
  27
  32
  35
  38
  41
  42
  43
  43
  43
  42
  42
  41
  39
  38
  37
  36
  36
  35
  35
  36
  37
  38
Tax expense, $m
  1
  0
  0
  0
  0
  0
  2
  4
  6
  7
  9
  10
  10
  11
  11
  12
  12
  12
  11
  11
  11
  11
  10
  10
  10
  10
  10
  10
  10
  10
  10
Net income, $m
  -134
  -33
  -24
  -16
  -7
  0
  6
  11
  16
  20
  23
  26
  28
  30
  31
  31
  32
  31
  31
  30
  30
  29
  28
  27
  27
  26
  26
  26
  26
  27
  28

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  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
  0
Total assets, $m
  7,706
  9,070
  11,352
  13,980
  16,962
  20,303
  24,003
  28,061
  32,470
  37,224
  42,316
  47,737
  53,479
  59,537
  65,903
  72,576
  79,552
  86,831
  94,417
  102,312
  110,523
  119,059
  127,930
  137,149
  146,729
  156,687
  167,041
  177,811
  189,018
  200,684
  212,836
Adjusted assets (=assets-cash), $m
  7,141
  9,070
  11,352
  13,980
  16,962
  20,303
  24,003
  28,061
  32,470
  37,224
  42,316
  47,737
  53,479
  59,537
  65,903
  72,576
  79,552
  86,831
  94,417
  102,312
  110,523
  119,059
  127,930
  137,149
  146,729
  156,687
  167,041
  177,811
  189,018
  200,684
  212,836
Revenue / Adjusted assets
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
  0.092
Average production assets, $m
  6,608
  8,418
  10,536
  12,975
  15,742
  18,843
  22,277
  26,043
  30,135
  34,548
  39,273
  44,304
  49,634
  55,256
  61,165
  67,357
  73,832
  80,588
  87,628
  94,955
  102,576
  110,499
  118,732
  127,287
  136,179
  145,421
  155,031
  165,026
  175,427
  186,254
  197,532
Working capital, $m
  -1,502
  186
  233
  287
  348
  417
  492
  576
  666
  764
  868
  979
  1,097
  1,221
  1,352
  1,489
  1,632
  1,781
  1,937
  2,099
  2,267
  2,443
  2,625
  2,814
  3,010
  3,215
  3,427
  3,648
  3,878
  4,117
  4,367
Total debt, $m
  3,951
  4,981
  6,864
  9,031
  11,491
  14,248
  17,301
  20,648
  24,286
  28,208
  32,409
  36,881
  41,619
  46,616
  51,868
  57,373
  63,128
  69,134
  75,392
  81,905
  88,680
  95,722
  103,041
  110,646
  118,550
  126,765
  135,307
  144,192
  153,438
  163,063
  173,088
Total liabilities, $m
  6,453
  7,483
  9,366
  11,533
  13,993
  16,750
  19,803
  23,150
  26,788
  30,710
  34,911
  39,383
  44,121
  49,118
  54,370
  59,875
  65,630
  71,636
  77,894
  84,407
  91,182
  98,224
  105,543
  113,148
  121,052
  129,267
  137,809
  146,694
  155,940
  165,565
  175,590
Total equity, $m
  1,253
  1,587
  1,987
  2,446
  2,968
  3,553
  4,201
  4,911
  5,682
  6,514
  7,405
  8,354
  9,359
  10,419
  11,533
  12,701
  13,922
  15,195
  16,523
  17,905
  19,342
  20,835
  22,388
  24,001
  25,678
  27,420
  29,232
  31,117
  33,078
  35,120
  37,246
Total liabilities and equity, $m
  7,706
  9,070
  11,353
  13,979
  16,961
  20,303
  24,004
  28,061
  32,470
  37,224
  42,316
  47,737
  53,480
  59,537
  65,903
  72,576
  79,552
  86,831
  94,417
  102,312
  110,524
  119,059
  127,931
  137,149
  146,730
  156,687
  167,041
  177,811
  189,018
  200,685
  212,836
Debt-to-equity ratio
  3.153
  3.140
  3.450
  3.690
  3.870
  4.010
  4.120
  4.200
  4.270
  4.330
  4.380
  4.410
  4.450
  4.470
  4.500
  4.520
  4.530
  4.550
  4.560
  4.570
  4.580
  4.590
  4.600
  4.610
  4.620
  4.620
  4.630
  4.630
  4.640
  4.640
  4.650
Adjusted equity ratio
  0.096
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -134
  -33
  -24
  -16
  -7
  0
  6
  11
  16
  20
  23
  26
  28
  30
  31
  31
  32
  31
  31
  30
  30
  29
  28
  27
  27
  26
  26
  26
  26
  27
  28
Depreciation, amort., depletion, $m
  243
  308
  386
  475
  577
  690
  816
  954
  1,104
  1,265
  1,439
  1,623
  1,818
  2,024
  2,240
  2,467
  2,704
  2,952
  3,210
  3,478
  3,757
  4,048
  4,349
  4,663
  4,988
  5,327
  5,679
  6,045
  6,426
  6,823
  7,236
Funds from operations, $m
  194
  276
  362
  460
  569
  691
  822
  965
  1,120
  1,285
  1,462
  1,649
  1,846
  2,054
  2,271
  2,499
  2,736
  2,983
  3,241
  3,509
  3,787
  4,076
  4,377
  4,690
  5,015
  5,353
  5,705
  6,071
  6,452
  6,849
  7,264
Change in working capital, $m
  2
  40
  47
  54
  61
  69
  76
  83
  90
  98
  104
  111
  118
  124
  131
  137
  143
  149
  156
  162
  168
  175
  182
  189
  197
  204
  212
  221
  230
  239
  249
Cash from operations, $m
  192
  236
  315
  406
  508
  622
  746
  882
  1,029
  1,188
  1,357
  1,538
  1,728
  1,929
  2,141
  2,362
  2,593
  2,834
  3,085
  3,347
  3,619
  3,901
  4,195
  4,501
  4,818
  5,149
  5,492
  5,850
  6,222
  6,610
  7,014
Maintenance CAPEX, $m
  0
  -242
  -308
  -386
  -475
  -577
  -690
  -816
  -954
  -1,104
  -1,265
  -1,439
  -1,623
  -1,818
  -2,024
  -2,240
  -2,467
  -2,704
  -2,952
  -3,210
  -3,478
  -3,757
  -4,048
  -4,349
  -4,663
  -4,988
  -5,327
  -5,679
  -6,045
  -6,426
  -6,823
New CAPEX, $m
  -46
  -1,811
  -2,118
  -2,438
  -2,767
  -3,101
  -3,434
  -3,766
  -4,092
  -4,413
  -4,726
  -5,031
  -5,330
  -5,622
  -5,909
  -6,193
  -6,474
  -6,756
  -7,040
  -7,328
  -7,621
  -7,922
  -8,233
  -8,556
  -8,891
  -9,242
  -9,610
  -9,995
  -10,401
  -10,828
  -11,278
Cash from investing activities, $m
  -64
  -2,053
  -2,426
  -2,824
  -3,242
  -3,678
  -4,124
  -4,582
  -5,046
  -5,517
  -5,991
  -6,470
  -6,953
  -7,440
  -7,933
  -8,433
  -8,941
  -9,460
  -9,992
  -10,538
  -11,099
  -11,679
  -12,281
  -12,905
  -13,554
  -14,230
  -14,937
  -15,674
  -16,446
  -17,254
  -18,101
Free cash flow, $m
  128
  -1,817
  -2,111
  -2,419
  -2,735
  -3,055
  -3,379
  -3,700
  -4,017
  -4,329
  -4,634
  -4,932
  -5,224
  -5,510
  -5,792
  -6,071
  -6,349
  -6,627
  -6,907
  -7,191
  -7,481
  -7,778
  -8,086
  -8,404
  -8,736
  -9,082
  -9,444
  -9,824
  -10,224
  -10,644
  -11,086
Issuance/(repayment) of debt, $m
  -172
  1,595
  1,883
  2,168
  2,460
  2,756
  3,053
  3,347
  3,638
  3,922
  4,201
  4,472
  4,738
  4,997
  5,253
  5,505
  5,755
  6,006
  6,258
  6,514
  6,774
  7,042
  7,319
  7,605
  7,904
  8,215
  8,542
  8,885
  9,245
  9,625
  10,025
Issuance/(repurchase) of shares, $m
  0
  367
  423
  475
  529
  584
  642
  699
  756
  812
  868
  923
  977
  1,030
  1,083
  1,136
  1,189
  1,243
  1,296
  1,351
  1,407
  1,465
  1,524
  1,586
  1,650
  1,717
  1,786
  1,859
  1,935
  2,015
  2,099
Cash from financing (excl. dividends), $m  
  -187
  1,962
  2,306
  2,643
  2,989
  3,340
  3,695
  4,046
  4,394
  4,734
  5,069
  5,395
  5,715
  6,027
  6,336
  6,641
  6,944
  7,249
  7,554
  7,865
  8,181
  8,507
  8,843
  9,191
  9,554
  9,932
  10,328
  10,744
  11,180
  11,640
  12,124
Total cash flow (excl. dividends), $m
  -61
  145
  195
  224
  255
  285
  316
  346
  376
  406
  435
  463
  490
  517
  544
  570
  596
  622
  648
  674
  701
  729
  757
  787
  818
  850
  884
  920
  957
  996
  1,038
Retained Cash Flow (-), $m
  -68
  -367
  -423
  -475
  -529
  -585
  -648
  -710
  -772
  -832
  -891
  -949
  -1,005
  -1,060
  -1,114
  -1,168
  -1,221
  -1,274
  -1,327
  -1,382
  -1,437
  -1,494
  -1,552
  -1,613
  -1,677
  -1,743
  -1,812
  -1,885
  -1,961
  -2,042
  -2,127
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -222
  -228
  -251
  -275
  -299
  -332
  -364
  -395
  -426
  -456
  -486
  -515
  -543
  -571
  -598
  -625
  -652
  -680
  -708
  -736
  -765
  -795
  -826
  -859
  -892
  -928
  -965
  -1,004
  -1,046
  -1,089
Discount rate, %
 
  10.80
  11.34
  11.91
  12.50
  13.13
  13.78
  14.47
  15.20
  15.96
  16.75
  17.59
  18.47
  19.40
  20.37
  21.38
  22.45
  23.58
  24.75
  25.99
  27.29
  28.66
  30.09
  31.59
  33.17
  34.83
  36.57
  38.40
  40.32
  42.34
  44.45
PV of cash for distribution, $m
 
  -200
  -184
  -179
  -171
  -162
  -153
  -141
  -127
  -112
  -97
  -82
  -67
  -54
  -43
  -33
  -24
  -18
  -13
  -9
  -6
  -4
  -2
  -1
  -1
  -1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  81.7
  67.9
  57.4
  49.2
  42.8
  37.6
  33.3
  29.8
  26.9
  24.4
  22.3
  20.5
  18.9
  17.5
  16.2
  15.2
  14.2
  13.3
  12.5
  11.8
  11.2
  10.6
  10.0
  9.5
  9.1
  8.6
  8.2
  7.9
  7.5
  7.2

TerraForm Power, Inc. is a United States-based holding company. The Company owns clean power generation assets. This includes solar and wind assets located in the United States, Canada and other markets. Its clean power generation assets serve utility, commercial and residential customers. As of December 31, 2016, the Company's portfolio consisted of renewable energy facilities located in the United States, Canada, the United Kingdom and Chile with a combined nameplate capacity of 2,983.1 megawatts. It owns and operates over 500 hundred wind and solar clean energy power installations. Its projects include Bluebird, River Mountains Solar, Laho Solar, SunE Perpetual Lindsday, Sandringham, California Public institutions and Summit Solar Projects. The Company holds interest in TerraForm Power, LLC (Terra LLC), which is an owner and operator of renewable energy facilities that have long-term contractual arrangements to sell the electricity generated by these facilities to third parties.

FINANCIAL RATIOS  of  TerraForm Power (TERP)

Valuation Ratios
P/E Ratio -12.1
Price to Sales 2.5
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow 11.1
Growth Rates
Sales Growth Rate 39.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -92.9%
Cap. Spend. - 3 Yr. Gr. Rate -25.8%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 138.7%
Total Debt to Equity 315.3%
Interest Coverage 0
Management Effectiveness
Return On Assets 1.6%
Ret/ On Assets - 3 Yr. Avg. 1.3%
Return On Total Capital -2.4%
Ret/ On T. Cap. - 3 Yr. Avg. -2.4%
Return On Equity -11%
Return On Equity - 3 Yr. Avg. -12%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 78.6%
Gross Margin - 3 Yr. Avg. 81.4%
EBITDA Margin 39.5%
EBITDA Margin - 3 Yr. Avg. 25.9%
Operating Margin 13.4%
Oper. Margin - 3 Yr. Avg. 7.4%
Pre-Tax Margin -36.8%
Pre-Tax Margin - 3 Yr. Avg. -50.8%
Net Profit Margin -20.5%
Net Profit Margin - 3 Yr. Avg. -22.1%
Effective Tax Rate -0.4%
Eff/ Tax Rate - 3 Yr. Avg. 3.7%
Payout Ratio 0%

TERP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TERP stock intrinsic value calculation we used $655 million for the last fiscal year's total revenue generated by TerraForm Power. The default revenue input number comes from 2016 income statement of TerraForm Power. 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 TERP stock valuation model: a) initial revenue growth rate of 27.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.8%, whose default value for TERP is calculated based on our internal credit rating of TerraForm Power, 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 Power.
    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 TERP stock the variable cost ratio is equal to 47%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $265 million in the base year in the intrinsic value calculation for TERP stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6% for TerraForm Power.

Corporate tax rate of 27% is the nominal tax rate for TerraForm Power. 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 TERP 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 TERP are equal to 1008.8%.

Life of production assets of 27.3 years is the average useful life of capital assets used in TerraForm Power 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 TERP is equal to 22.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1253 million for TerraForm Power - 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 141.703 million for TerraForm Power 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 Power at the current share price and the inputted number of shares is $1.6 billion.

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COMPANY NEWS

▶ Behind TerraForm Power Inc's 37% Share Pop Today   [Oct-17-17 12:28PM  Motley Fool]
▶ Brookfield Renewable Closes TerraForm Power Transaction   [Oct-16-17 07:15PM  GlobeNewswire]
▶ TerraForm Power posts 2Q profit   [Sep-29-17 10:57PM  Associated Press]
▶ 3 Stocks to Buy for a Better Tomorrow   [Sep-27-17 08:14PM  Motley Fool]
▶ NextEra Energy Partners Could Be a Growth Machine   [Sep-24-17 08:13AM  Motley Fool]
▶ Is TerraForm Power, Inc. a Buy?   [Sep-18-17 06:09PM  Motley Fool]
▶ Is TerraForm Power Inc (TERP) Undervalued?   [Sep-13-17 06:43PM  Simply Wall St.]
▶ Why I Love TerraForm Power, Inc.   [Sep-07-17 04:18PM  Motley Fool]
▶ TerraForm Power reports 1Q loss   [Aug-29-17 10:31PM  Associated Press]
▶ 3 Solar Stocks for Heading Into the Third Quarter   [Aug-01-17 06:10PM  Motley Fool]
▶ 2 Reasons TerraForm Power Inc Stock Could Rise   [Jul-26-17 08:16AM  Motley Fool]
▶ TerraForm Power Inc. in 3 Charts   [Jul-07-17 08:28AM  Motley Fool]
▶ [$$] Corrigan's Take: SunEdison Settlement Exempts Whistleblower Lawsuits   [Jun-29-17 04:25PM  The Wall Street Journal]
▶ [$$] Former SunEdison Executives Fight to Keep Whistleblower Suits Alive   [Jun-23-17 10:14AM  The Wall Street Journal]
▶ TerraForm Power Inc.'s Worst Move of 2017 So Far   [Jun-20-17 08:11AM  Motley Fool]
▶ [$$] SunEdison Delays Chapter 11 Voting Material Hearing   [May-31-17 03:28PM  The Wall Street Journal]
▶ [$$] SunEdison's TerraForm Stake Ignites Creditor Duel   [May-19-17 06:08PM  The Wall Street Journal]
▶ TerraForm Power Announces Receipt of Nasdaq Letter   [May-16-17 08:30AM  GlobeNewswire]
▶ 3 Things You Didn't Know About TerraForm Power, Inc.   [May-04-17 09:03AM  Motley Fool]
▶ [$$] Corrigan's Take: SunEdison Outlines $300 Million Rights Offering   [Apr-28-17 04:13PM  The Wall Street Journal]
▶ [$$] SunEdison Wins Court Approval for $640 Million in New Financing   [Apr-25-17 07:02PM  The Wall Street Journal]
▶ [$$] SunEdison Asks for $640 Million in New Financing   [Apr-06-17 03:25PM  The Wall Street Journal]
▶ [$$] SunEdison Files Plan to Repay Billions in Debt   [Mar-29-17 04:30PM  The Wall Street Journal]
▶ The Best Investing Ideas in Solar   [Mar-25-17 09:03AM  Motley Fool]
▶ [$$] SunEdison Allots $16 Million From Settlement to Junior Creditors   [Mar-24-17 01:50PM  The Wall Street Journal]
▶ Why TerraForm Power May Not Be the Best Yieldco Today   [Mar-16-17 12:13PM  Motley Fool]
▶ [$$] SunEdison Settles with TerraForm Power, TerraForm Global   [Mar-13-17 07:19AM  The Wall Street Journal]
▶ This Week in Solar   [Mar-11-17 11:01AM  Motley Fool]
▶ Your Gut Feeling is Right: 8Point3 Energy Partners is a Buy   [Mar-10-17 11:19AM  at Motley Fool]
▶ Brookfield to take control of SunEdison yieldcos   [08:30AM  at bizjournals.com]
▶ What You Need to Know About the TerraForm Yieldco Buyouts   [Mar-07-17 04:07PM  at Motley Fool]
▶ [$$] SunEdison Turns Eye Toward Bankruptcy Exit   [02:59PM  at The Wall Street Journal]
▶ [$$] Brookfield to Buy TerraForm Global   [08:02AM  at The Wall Street Journal]
▶ TerraForm Power wins $86 million in Canada project financing   [Mar-03-17 08:45AM  at bizjournals.com]
▶ [$$] Former SunEdison Executives File Whistleblower Lawsuits   [Feb-24-17 09:53PM  at The Wall Street Journal]
▶ [$$] Former SunEdison Executives File Whistleblower Lawsuits   [04:11PM  at The Wall Street Journal]
Financial statements of TERP
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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