Intrinsic value of BCE, Inc. - BCE

Previous Close

$44.38

  Intrinsic Value

$36.26

stock screener

  Rating & Target

hold

-18%

Previous close

$44.38

 
Intrinsic value

$36.26

 
Up/down potential

-18%

 
Rating

hold

We calculate the intrinsic value of BCE 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 0001), $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 39.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  17,732
  18,140
  18,606
  19,129
  19,709
  20,345
  21,038
  21,788
  22,596
  23,463
  24,391
  25,381
  26,435
  27,555
  28,744
  30,004
  31,337
  32,747
  34,237
  35,810
  37,470
  39,220
  41,066
  43,010
  45,057
  47,213
  49,482
  51,870
  54,382
  57,024
Variable operating expenses, $m
  12,891
  13,147
  13,439
  13,768
  14,131
  14,531
  14,965
  15,436
  15,943
  16,487
  15,301
  15,922
  16,583
  17,286
  18,032
  18,822
  19,658
  20,543
  21,478
  22,464
  23,506
  24,604
  25,761
  26,981
  28,265
  29,618
  31,041
  32,539
  34,115
  35,773
Fixed operating expenses, $m
  748
  765
  781
  799
  816
  834
  852
  871
  890
  910
  930
  950
  971
  993
  1,015
  1,037
  1,060
  1,083
  1,107
  1,131
  1,156
  1,181
  1,207
  1,234
  1,261
  1,289
  1,317
  1,346
  1,376
  1,406
Total operating expenses, $m
  13,639
  13,912
  14,220
  14,567
  14,947
  15,365
  15,817
  16,307
  16,833
  17,397
  16,231
  16,872
  17,554
  18,279
  19,047
  19,859
  20,718
  21,626
  22,585
  23,595
  24,662
  25,785
  26,968
  28,215
  29,526
  30,907
  32,358
  33,885
  35,491
  37,179
Operating income, $m
  4,093
  4,228
  4,385
  4,563
  4,761
  4,981
  5,220
  5,481
  5,763
  6,067
  8,160
  8,509
  8,881
  9,277
  9,698
  10,145
  10,619
  11,121
  11,653
  12,215
  12,808
  13,435
  14,097
  14,795
  15,531
  16,306
  17,124
  17,985
  18,891
  19,846
EBITDA, $m
  8,140
  8,327
  8,544
  8,789
  9,063
  9,364
  9,692
  10,050
  10,436
  10,851
  11,296
  11,771
  12,279
  12,819
  13,393
  14,002
  14,647
  15,331
  16,054
  16,818
  17,625
  18,477
  19,376
  20,324
  21,323
  22,376
  23,485
  24,652
  25,882
  27,176
Interest expense (income), $m
  653
  976
  1,005
  1,039
  1,079
  1,123
  1,172
  1,226
  1,284
  1,347
  1,416
  1,489
  1,567
  1,651
  1,740
  1,835
  1,935
  2,041
  2,154
  2,273
  2,399
  2,532
  2,672
  2,820
  2,976
  3,140
  3,313
  3,495
  3,687
  3,889
  4,101
Earnings before tax, $m
  3,116
  3,223
  3,346
  3,484
  3,639
  3,809
  3,995
  4,197
  4,416
  4,651
  6,671
  6,941
  7,230
  7,537
  7,863
  8,210
  8,578
  8,967
  9,379
  9,815
  10,276
  10,763
  11,277
  11,819
  12,390
  12,993
  13,628
  14,298
  15,002
  15,745
Tax expense, $m
  841
  870
  903
  941
  982
  1,028
  1,079
  1,133
  1,192
  1,256
  1,801
  1,874
  1,952
  2,035
  2,123
  2,217
  2,316
  2,421
  2,532
  2,650
  2,775
  2,906
  3,045
  3,191
  3,345
  3,508
  3,680
  3,860
  4,051
  4,251
Net income, $m
  2,275
  2,353
  2,442
  2,544
  2,656
  2,780
  2,916
  3,064
  3,224
  3,395
  4,870
  5,067
  5,278
  5,502
  5,740
  5,993
  6,262
  6,546
  6,847
  7,165
  7,502
  7,857
  8,232
  8,628
  9,045
  9,485
  9,949
  10,437
  10,952
  11,494

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  43,143
  44,135
  45,269
  46,543
  47,954
  49,502
  51,188
  53,013
  54,979
  57,089
  59,346
  61,755
  64,319
  67,045
  69,937
  73,002
  76,246
  79,677
  83,302
  87,129
  91,168
  95,427
  99,916
  104,647
  109,628
  114,874
  120,395
  126,205
  132,317
  138,745
Adjusted assets (=assets-cash), $m
  43,143
  44,135
  45,269
  46,543
  47,954
  49,502
  51,188
  53,013
  54,979
  57,089
  59,346
  61,755
  64,319
  67,045
  69,937
  73,002
  76,246
  79,677
  83,302
  87,129
  91,168
  95,427
  99,916
  104,647
  109,628
  114,874
  120,395
  126,205
  132,317
  138,745
Revenue / Adjusted assets
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
Average production assets, $m
  28,264
  28,914
  29,657
  30,492
  31,416
  32,430
  33,535
  34,730
  36,018
  37,401
  38,880
  40,458
  42,138
  43,923
  45,818
  47,826
  49,951
  52,199
  54,574
  57,081
  59,727
  62,517
  65,459
  68,558
  71,821
  75,258
  78,875
  82,681
  86,685
  90,897
Working capital, $m
  -319
  -327
  -335
  -344
  -355
  -366
  -379
  -392
  -407
  -422
  -439
  -457
  -476
  -496
  -517
  -540
  -564
  -589
  -616
  -645
  -674
  -706
  -739
  -774
  -811
  -850
  -891
  -934
  -979
  -1,026
Total debt, $m
  18,606
  19,244
  19,973
  20,792
  21,699
  22,695
  23,779
  24,952
  26,217
  27,573
  29,025
  30,573
  32,222
  33,975
  35,834
  37,805
  39,891
  42,097
  44,428
  46,889
  49,486
  52,225
  55,111
  58,153
  61,356
  64,729
  68,279
  72,015
  75,945
  80,079
Total liabilities, $m
  27,741
  28,379
  29,108
  29,927
  30,834
  31,830
  32,914
  34,087
  35,351
  36,708
  38,159
  39,708
  41,357
  43,110
  44,969
  46,940
  49,026
  51,232
  53,563
  56,024
  58,621
  61,360
  64,246
  67,288
  70,491
  73,864
  77,414
  81,150
  85,080
  89,213
Total equity, $m
  15,402
  15,756
  16,161
  16,616
  17,120
  17,672
  18,274
  18,926
  19,627
  20,381
  21,187
  22,046
  22,962
  23,935
  24,967
  26,062
  27,220
  28,445
  29,739
  31,105
  32,547
  34,067
  35,670
  37,359
  39,137
  41,010
  42,981
  45,055
  47,237
  49,532
Total liabilities and equity, $m
  43,143
  44,135
  45,269
  46,543
  47,954
  49,502
  51,188
  53,013
  54,978
  57,089
  59,346
  61,754
  64,319
  67,045
  69,936
  73,002
  76,246
  79,677
  83,302
  87,129
  91,168
  95,427
  99,916
  104,647
  109,628
  114,874
  120,395
  126,205
  132,317
  138,745
Debt-to-equity ratio
  1.210
  1.220
  1.240
  1.250
  1.270
  1.280
  1.300
  1.320
  1.340
  1.350
  1.370
  1.390
  1.400
  1.420
  1.440
  1.450
  1.470
  1.480
  1.490
  1.510
  1.520
  1.530
  1.550
  1.560
  1.570
  1.580
  1.590
  1.600
  1.610
  1.620
Adjusted equity ratio
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,275
  2,353
  2,442
  2,544
  2,656
  2,780
  2,916
  3,064
  3,224
  3,395
  4,870
  5,067
  5,278
  5,502
  5,740
  5,993
  6,262
  6,546
  6,847
  7,165
  7,502
  7,857
  8,232
  8,628
  9,045
  9,485
  9,949
  10,437
  10,952
  11,494
Depreciation, amort., depletion, $m
  4,047
  4,099
  4,159
  4,227
  4,301
  4,383
  4,472
  4,568
  4,672
  4,784
  3,135
  3,263
  3,398
  3,542
  3,695
  3,857
  4,028
  4,210
  4,401
  4,603
  4,817
  5,042
  5,279
  5,529
  5,792
  6,069
  6,361
  6,668
  6,991
  7,330
Funds from operations, $m
  6,322
  6,452
  6,602
  6,770
  6,957
  7,163
  7,388
  7,632
  7,896
  8,179
  8,005
  8,330
  8,676
  9,044
  9,435
  9,850
  10,290
  10,756
  11,248
  11,769
  12,318
  12,899
  13,511
  14,157
  14,837
  15,554
  16,310
  17,105
  17,943
  18,824
Change in working capital, $m
  -6
  -7
  -8
  -9
  -10
  -11
  -12
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -23
  -24
  -25
  -27
  -28
  -30
  -32
  -33
  -35
  -37
  -39
  -41
  -43
  -45
  -48
Cash from operations, $m
  6,328
  6,460
  6,610
  6,780
  6,968
  7,175
  7,401
  7,646
  7,910
  8,195
  8,022
  8,348
  8,695
  9,064
  9,456
  9,873
  10,314
  10,781
  11,275
  11,797
  12,348
  12,930
  13,544
  14,192
  14,874
  15,593
  16,350
  17,148
  17,988
  18,872
Maintenance CAPEX, $m
  -2,235
  -2,279
  -2,332
  -2,392
  -2,459
  -2,534
  -2,615
  -2,704
  -2,801
  -2,905
  -3,016
  -3,135
  -3,263
  -3,398
  -3,542
  -3,695
  -3,857
  -4,028
  -4,210
  -4,401
  -4,603
  -4,817
  -5,042
  -5,279
  -5,529
  -5,792
  -6,069
  -6,361
  -6,668
  -6,991
New CAPEX, $m
  -554
  -650
  -743
  -834
  -924
  -1,014
  -1,104
  -1,196
  -1,288
  -1,382
  -1,479
  -1,578
  -1,680
  -1,786
  -1,895
  -2,008
  -2,125
  -2,248
  -2,375
  -2,508
  -2,646
  -2,790
  -2,941
  -3,099
  -3,264
  -3,436
  -3,617
  -3,806
  -4,004
  -4,212
Cash from investing activities, $m
  -2,789
  -2,929
  -3,075
  -3,226
  -3,383
  -3,548
  -3,719
  -3,900
  -4,089
  -4,287
  -4,495
  -4,713
  -4,943
  -5,184
  -5,437
  -5,703
  -5,982
  -6,276
  -6,585
  -6,909
  -7,249
  -7,607
  -7,983
  -8,378
  -8,793
  -9,228
  -9,686
  -10,167
  -10,672
  -11,203
Free cash flow, $m
  3,539
  3,530
  3,535
  3,554
  3,584
  3,627
  3,681
  3,746
  3,822
  3,908
  3,527
  3,634
  3,752
  3,880
  4,020
  4,170
  4,332
  4,505
  4,690
  4,888
  5,099
  5,323
  5,561
  5,814
  6,081
  6,365
  6,664
  6,981
  7,316
  7,669
Issuance/(repayment) of debt, $m
  528
  638
  729
  819
  907
  995
  1,084
  1,173
  1,264
  1,357
  1,451
  1,549
  1,649
  1,752
  1,860
  1,971
  2,086
  2,206
  2,331
  2,461
  2,597
  2,739
  2,887
  3,041
  3,203
  3,373
  3,550
  3,736
  3,930
  4,134
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
Cash from financing (excl. dividends), $m  
  528
  638
  729
  819
  907
  995
  1,084
  1,173
  1,264
  1,357
  1,451
  1,549
  1,649
  1,752
  1,860
  1,971
  2,086
  2,206
  2,331
  2,461
  2,597
  2,739
  2,887
  3,041
  3,203
  3,373
  3,550
  3,736
  3,930
  4,134
Total cash flow (excl. dividends), $m
  4,067
  4,168
  4,265
  4,372
  4,492
  4,623
  4,765
  4,919
  5,086
  5,264
  4,979
  5,183
  5,401
  5,633
  5,879
  6,141
  6,418
  6,711
  7,021
  7,349
  7,696
  8,062
  8,448
  8,855
  9,285
  9,737
  10,214
  10,717
  11,246
  11,803
Retained Cash Flow (-), $m
  -318
  -354
  -405
  -455
  -504
  -553
  -602
  -651
  -702
  -753
  -806
  -860
  -916
  -973
  -1,032
  -1,094
  -1,158
  -1,225
  -1,294
  -1,366
  -1,442
  -1,521
  -1,603
  -1,689
  -1,779
  -1,873
  -1,971
  -2,074
  -2,182
  -2,295
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
  3,749
  3,814
  3,860
  3,918
  3,988
  4,070
  4,163
  4,268
  4,384
  4,511
  4,173
  4,323
  4,485
  4,660
  4,847
  5,046
  5,259
  5,486
  5,727
  5,983
  6,254
  6,541
  6,845
  7,167
  7,506
  7,865
  8,243
  8,643
  9,064
  9,508
Discount rate, %
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.51
  9.99
  10.49
  11.01
  11.57
  12.14
  12.75
  13.39
  14.06
  14.76
  15.50
  16.27
  17.09
  17.94
  18.84
  19.78
  20.77
  21.81
  22.90
  24.04
  25.25
  26.51
  27.83
  29.22
PV of cash for distribution, $m
  3,501
  3,303
  3,079
  2,856
  2,636
  2,418
  2,204
  1,992
  1,786
  1,587
  1,252
  1,093
  942
  802
  674
  558
  454
  364
  286
  221
  167
  123
  89
  63
  43
  29
  19
  12
  7
  4
Current shareholders' claim on cash, %
  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

BCE Inc. is a communications company. The Company's segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

FINANCIAL RATIOS  of  BCE, Inc. (BCE)

Valuation Ratios
P/E Ratio 17.2
Price to Sales 2.4
Price to Book 3
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 18.2
Growth Rates
Sales Growth Rate 0.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4%
Cap. Spend. - 3 Yr. Gr. Rate 1.1%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 94.5%
Total Debt to Equity 122.3%
Interest Coverage 6
Management Effectiveness
Return On Assets 7.5%
Ret/ On Assets - 3 Yr. Avg. 7.2%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 7.5%
Return On Equity 17.5%
Return On Equity - 3 Yr. Avg. 17%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 69.1%
Gross Margin - 3 Yr. Avg. 69.6%
EBITDA Margin 39.5%
EBITDA Margin - 3 Yr. Avg. 38.2%
Operating Margin 23.6%
Oper. Margin - 3 Yr. Avg. 22.1%
Pre-Tax Margin 19.3%
Pre-Tax Margin - 3 Yr. Avg. 17.9%
Net Profit Margin 14%
Net Profit Margin - 3 Yr. Avg. 12.8%
Effective Tax Rate 26.4%
Eff/ Tax Rate - 3 Yr. Avg. 25.7%
Payout Ratio 80.2%

BCE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BCE stock intrinsic value calculation we used $17384 million for the last fiscal year's total revenue generated by BCE, Inc.. The default revenue input number comes from 0001 income statement of BCE, Inc.. 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 BCE 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 7.1%, whose default value for BCE is calculated based on our internal credit rating of BCE, Inc., 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 BCE, Inc..
    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 BCE stock the variable cost ratio is equal to 72.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $732 million in the base year in the intrinsic value calculation for BCE 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 5.4% for BCE, Inc..

Corporate tax rate of 27% is the nominal tax rate for BCE, Inc.. 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 BCE 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 BCE are equal to 159.4%.

Life of production assets of 12.4 years is the average useful life of capital assets used in BCE, Inc. 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 BCE is equal to -1.8%. 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 - $15083.7037037 million for BCE, Inc. - 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 898.347 million for BCE, Inc. 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 BCE, Inc. at the current share price and the inputted number of shares is $39.9 billion.

RELATED COMPANIES Price Int.Val. Rating
AAPL Apple Inc. 188.02 166.34  hold
IBM International 140.21 162.95  hold

CONTACT US       ASSET ALLOCATION

About X-FIN       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2019. All rigths reserved.