Intrinsic value of BCE - BCE

Previous Close

$43.97

  Intrinsic Value

$26.40

stock screener

  Rating & Target

sell

-40%

Previous close

$43.97

 
Intrinsic value

$26.40

 
Up/down potential

-40%

 
Rating

sell

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

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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of BCE (BCE) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  0.95
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
Revenue, $m
  16,075
  16,879
  17,723
  18,609
  19,539
  20,516
  21,542
  22,619
  23,750
  24,938
  26,184
  27,494
  28,868
  30,312
  31,827
  33,419
  35,090
  36,844
  38,686
  40,621
  42,652
  44,784
  47,024
  49,375
  51,843
  54,436
  57,157
  60,015
  63,016
  66,167
  69,475
Variable operating expenses, $m
 
  13,217
  13,844
  14,503
  15,195
  15,922
  16,685
  17,486
  18,327
  19,210
  20,138
  20,449
  21,471
  22,545
  23,672
  24,855
  26,098
  27,403
  28,773
  30,212
  31,722
  33,309
  34,974
  36,723
  38,559
  40,487
  42,511
  44,637
  46,869
  49,212
  51,673
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
  12,282
  13,217
  13,844
  14,503
  15,195
  15,922
  16,685
  17,486
  18,327
  19,210
  20,138
  20,449
  21,471
  22,545
  23,672
  24,855
  26,098
  27,403
  28,773
  30,212
  31,722
  33,309
  34,974
  36,723
  38,559
  40,487
  42,511
  44,637
  46,869
  49,212
  51,673
Operating income, $m
  3,793
  3,662
  3,878
  4,105
  4,344
  4,594
  4,857
  5,133
  5,423
  5,727
  6,047
  7,045
  7,397
  7,767
  8,156
  8,563
  8,992
  9,441
  9,913
  10,409
  10,929
  11,476
  12,050
  12,652
  13,285
  13,949
  14,646
  15,379
  16,148
  16,955
  17,803
EBITDA, $m
  6,389
  6,500
  6,825
  7,166
  7,524
  7,900
  8,295
  8,710
  9,146
  9,603
  10,083
  10,587
  11,117
  11,672
  12,256
  12,869
  13,512
  14,188
  14,897
  15,642
  16,424
  17,245
  18,108
  19,013
  19,964
  20,962
  22,010
  23,111
  24,266
  25,479
  26,753
Interest expense (income), $m
  653
  641
  690
  742
  796
  853
  913
  976
  1,042
  1,111
  1,184
  1,261
  1,341
  1,425
  1,514
  1,607
  1,704
  1,807
  1,914
  2,027
  2,146
  2,271
  2,401
  2,539
  2,683
  2,834
  2,993
  3,160
  3,336
  3,520
  3,713
Earnings before tax, $m
  3,106
  3,021
  3,188
  3,364
  3,548
  3,741
  3,944
  4,157
  4,381
  4,616
  4,862
  5,784
  6,056
  6,342
  6,642
  6,957
  7,287
  7,634
  7,999
  8,381
  8,783
  9,205
  9,648
  10,113
  10,602
  11,114
  11,653
  12,218
  12,812
  13,435
  14,090
Tax expense, $m
  821
  816
  861
  908
  958
  1,010
  1,065
  1,122
  1,183
  1,246
  1,313
  1,562
  1,635
  1,712
  1,793
  1,878
  1,968
  2,061
  2,160
  2,263
  2,371
  2,485
  2,605
  2,731
  2,862
  3,001
  3,146
  3,299
  3,459
  3,628
  3,804
Net income, $m
  2,243
  2,206
  2,328
  2,456
  2,590
  2,731
  2,879
  3,035
  3,198
  3,370
  3,550
  4,223
  4,421
  4,630
  4,849
  5,078
  5,320
  5,573
  5,839
  6,118
  6,412
  6,720
  7,043
  7,383
  7,739
  8,114
  8,507
  8,919
  9,353
  9,808
  10,285

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  631
  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
  37,087
  38,274
  40,188
  42,197
  44,307
  46,522
  48,848
  51,291
  53,855
  56,548
  59,375
  62,344
  65,461
  68,734
  72,171
  75,780
  79,569
  83,547
  87,724
  92,110
  96,716
  101,552
  106,629
  111,961
  117,559
  123,437
  129,609
  136,089
  142,894
  150,038
  157,540
Adjusted assets (=assets-cash), $m
  36,456
  38,274
  40,188
  42,197
  44,307
  46,522
  48,848
  51,291
  53,855
  56,548
  59,375
  62,344
  65,461
  68,734
  72,171
  75,780
  79,569
  83,547
  87,724
  92,110
  96,716
  101,552
  106,629
  111,961
  117,559
  123,437
  129,609
  136,089
  142,894
  150,038
  157,540
Revenue / Adjusted assets
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
Average production assets, $m
  24,850
  26,095
  27,399
  28,769
  30,208
  31,718
  33,304
  34,969
  36,718
  38,554
  40,481
  42,505
  44,631
  46,862
  49,205
  51,665
  54,249
  56,961
  59,809
  62,800
  65,940
  69,237
  72,698
  76,333
  80,150
  84,158
  88,365
  92,784
  97,423
  102,294
  107,409
Working capital, $m
  -3,888
  -945
  -992
  -1,042
  -1,094
  -1,149
  -1,206
  -1,267
  -1,330
  -1,397
  -1,466
  -1,540
  -1,617
  -1,697
  -1,782
  -1,871
  -1,965
  -2,063
  -2,166
  -2,275
  -2,388
  -2,508
  -2,633
  -2,765
  -2,903
  -3,048
  -3,201
  -3,361
  -3,529
  -3,705
  -3,891
Total debt, $m
  15,883
  16,426
  17,659
  18,953
  20,312
  21,738
  23,236
  24,809
  26,461
  28,195
  30,016
  31,928
  33,935
  36,043
  38,256
  40,580
  43,020
  45,582
  48,272
  51,097
  54,063
  57,177
  60,447
  63,881
  67,486
  71,271
  75,246
  79,419
  83,801
  88,403
  93,234
Total liabilities, $m
  24,105
  24,648
  25,881
  27,175
  28,534
  29,960
  31,458
  33,031
  34,683
  36,417
  38,238
  40,150
  42,157
  44,265
  46,478
  48,802
  51,242
  53,804
  56,494
  59,319
  62,285
  65,399
  68,669
  72,103
  75,708
  79,493
  83,468
  87,641
  92,023
  96,625
  101,456
Total equity, $m
  12,982
  13,625
  14,307
  15,022
  15,773
  16,562
  17,390
  18,259
  19,172
  20,131
  21,138
  22,194
  23,304
  24,469
  25,693
  26,978
  28,326
  29,743
  31,230
  32,791
  34,431
  36,152
  37,960
  39,858
  41,851
  43,944
  46,141
  48,448
  50,870
  53,414
  56,084
Total liabilities and equity, $m
  37,087
  38,273
  40,188
  42,197
  44,307
  46,522
  48,848
  51,290
  53,855
  56,548
  59,376
  62,344
  65,461
  68,734
  72,171
  75,780
  79,568
  83,547
  87,724
  92,110
  96,716
  101,551
  106,629
  111,961
  117,559
  123,437
  129,609
  136,089
  142,893
  150,039
  157,540
Debt-to-equity ratio
  1.223
  1.210
  1.230
  1.260
  1.290
  1.310
  1.340
  1.360
  1.380
  1.400
  1.420
  1.440
  1.460
  1.470
  1.490
  1.500
  1.520
  1.530
  1.550
  1.560
  1.570
  1.580
  1.590
  1.600
  1.610
  1.620
  1.630
  1.640
  1.650
  1.660
  1.660
Adjusted equity ratio
  0.339
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,243
  2,206
  2,328
  2,456
  2,590
  2,731
  2,879
  3,035
  3,198
  3,370
  3,550
  4,223
  4,421
  4,630
  4,849
  5,078
  5,320
  5,573
  5,839
  6,118
  6,412
  6,720
  7,043
  7,383
  7,739
  8,114
  8,507
  8,919
  9,353
  9,808
  10,285
Depreciation, amort., depletion, $m
  2,596
  2,838
  2,946
  3,060
  3,180
  3,306
  3,438
  3,577
  3,723
  3,876
  4,036
  3,542
  3,719
  3,905
  4,100
  4,305
  4,521
  4,747
  4,984
  5,233
  5,495
  5,770
  6,058
  6,361
  6,679
  7,013
  7,364
  7,732
  8,119
  8,524
  8,951
Funds from operations, $m
  4,058
  5,043
  5,274
  5,516
  5,770
  6,037
  6,317
  6,612
  6,921
  7,245
  7,586
  7,765
  8,140
  8,535
  8,949
  9,384
  9,840
  10,320
  10,823
  11,352
  11,907
  12,489
  13,101
  13,744
  14,418
  15,127
  15,870
  16,651
  17,471
  18,332
  19,236
Change in working capital, $m
  -859
  -45
  -47
  -50
  -52
  -55
  -57
  -60
  -63
  -67
  -70
  -73
  -77
  -81
  -85
  -89
  -94
  -98
  -103
  -108
  -114
  -119
  -125
  -132
  -138
  -145
  -152
  -160
  -168
  -176
  -185
Cash from operations, $m
  4,917
  5,088
  5,321
  5,566
  5,822
  6,092
  6,375
  6,672
  6,984
  7,312
  7,656
  7,838
  8,217
  8,616
  9,034
  9,473
  9,934
  10,418
  10,926
  11,460
  12,020
  12,609
  13,227
  13,875
  14,557
  15,272
  16,023
  16,811
  17,639
  18,509
  19,421
Maintenance CAPEX, $m
  0
  -2,071
  -2,175
  -2,283
  -2,397
  -2,517
  -2,643
  -2,775
  -2,914
  -3,060
  -3,213
  -3,373
  -3,542
  -3,719
  -3,905
  -4,100
  -4,305
  -4,521
  -4,747
  -4,984
  -5,233
  -5,495
  -5,770
  -6,058
  -6,361
  -6,679
  -7,013
  -7,364
  -7,732
  -8,119
  -8,524
New CAPEX, $m
  -2,791
  -1,245
  -1,305
  -1,370
  -1,438
  -1,510
  -1,586
  -1,665
  -1,748
  -1,836
  -1,928
  -2,024
  -2,125
  -2,232
  -2,343
  -2,460
  -2,583
  -2,712
  -2,848
  -2,990
  -3,140
  -3,297
  -3,462
  -3,635
  -3,817
  -4,008
  -4,208
  -4,418
  -4,639
  -4,871
  -5,115
Cash from investing activities, $m
  -3,393
  -3,316
  -3,480
  -3,653
  -3,835
  -4,027
  -4,229
  -4,440
  -4,662
  -4,896
  -5,141
  -5,397
  -5,667
  -5,951
  -6,248
  -6,560
  -6,888
  -7,233
  -7,595
  -7,974
  -8,373
  -8,792
  -9,232
  -9,693
  -10,178
  -10,687
  -11,221
  -11,782
  -12,371
  -12,990
  -13,639
Free cash flow, $m
  1,524
  1,773
  1,842
  1,912
  1,986
  2,064
  2,146
  2,232
  2,322
  2,416
  2,515
  2,441
  2,550
  2,665
  2,786
  2,912
  3,045
  3,185
  3,332
  3,485
  3,647
  3,817
  3,995
  4,182
  4,379
  4,585
  4,802
  5,029
  5,268
  5,519
  5,782
Issuance/(repayment) of debt, $m
  532
  1,174
  1,232
  1,294
  1,359
  1,427
  1,498
  1,573
  1,652
  1,734
  1,821
  1,912
  2,007
  2,108
  2,213
  2,324
  2,440
  2,562
  2,690
  2,825
  2,966
  3,114
  3,270
  3,433
  3,605
  3,785
  3,975
  4,173
  4,382
  4,601
  4,831
Issuance/(repurchase) of shares, $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
Cash from financing (excl. dividends), $m  
  453
  1,174
  1,232
  1,294
  1,359
  1,427
  1,498
  1,573
  1,652
  1,734
  1,821
  1,912
  2,007
  2,108
  2,213
  2,324
  2,440
  2,562
  2,690
  2,825
  2,966
  3,114
  3,270
  3,433
  3,605
  3,785
  3,975
  4,173
  4,382
  4,601
  4,831
Total cash flow (excl. dividends), $m
  1,977
  2,947
  3,074
  3,206
  3,345
  3,491
  3,644
  3,804
  3,973
  4,150
  4,336
  4,352
  4,557
  4,773
  4,999
  5,236
  5,485
  5,747
  6,022
  6,310
  6,613
  6,931
  7,265
  7,616
  7,984
  8,371
  8,776
  9,203
  9,650
  10,120
  10,614
Retained Cash Flow (-), $m
  -382
  -643
  -681
  -715
  -751
  -789
  -828
  -869
  -913
  -959
  -1,007
  -1,057
  -1,110
  -1,165
  -1,223
  -1,285
  -1,349
  -1,416
  -1,487
  -1,561
  -1,640
  -1,722
  -1,808
  -1,898
  -1,993
  -2,093
  -2,197
  -2,307
  -2,422
  -2,544
  -2,671
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
 
  2,304
  2,393
  2,491
  2,594
  2,702
  2,816
  2,935
  3,060
  3,192
  3,330
  3,296
  3,448
  3,608
  3,775
  3,951
  4,136
  4,331
  4,535
  4,749
  4,974
  5,210
  5,457
  5,718
  5,991
  6,278
  6,579
  6,896
  7,228
  7,577
  7,943
Discount rate, %
 
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
 
  2,157
  2,085
  2,005
  1,916
  1,817
  1,709
  1,594
  1,473
  1,348
  1,221
  1,038
  921
  807
  697
  594
  499
  412
  334
  267
  209
  160
  120
  88
  63
  44
  30
  20
  13
  8
  5
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

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 (BCE)

Valuation Ratios
P/E Ratio 17.1
Price to Sales 2.4
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 7.8
Price to Free Cash Flow 18
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 $16075 million for the last fiscal year's total revenue generated by BCE. The default revenue input number comes from 2016 income statement of BCE. 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 5% 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 6.8%, whose default value for BCE is calculated based on our internal credit rating of BCE, 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.
    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 78.5%.

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 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 4.2% for BCE.

Corporate tax rate of 27% is the nominal tax rate for BCE. 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 154.6%.

Life of production assets of 12 years is the average useful life of capital assets used in BCE 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 -5.6%. 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 - $12982 million for BCE - 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 896.272 million for BCE 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 at the current share price and the inputted number of shares is $39.4 billion.

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COMPANY NEWS

▶ BCE beats 4Q profit forecasts   [08:21AM  Associated Press]
▶ BCE Inc. to Host Earnings Call   [06:10AM  ACCESSWIRE]
▶ January Dividend Stocks To Look Out For   [08:02AM  Simply Wall St.]
▶ Bell Media Brings Starz to Canada   [08:00AM  CNW Group]
▶ TSX Favorite Dividend Stocks   [Dec-24-17 08:02AM  Simply Wall St.]
▶ BCE, Inc. Value Analysis (NYSE:BCE) : December 19, 2017   [Dec-19-17 02:17PM  Capital Cube]
▶ Pay Less for Inflation-Beating Gains With BCE Inc. (USA)   [Dec-06-17 10:13AM  InvestorPlace]
▶ November Dividend Favorites BCE And More   [Nov-23-17 08:02AM  Simply Wall St.]
▶ ETFs with exposure to BCE, Inc. : November 20, 2017   [Nov-20-17 11:48AM  Capital Cube]
▶ ETFs with exposure to BCE, Inc. : November 9, 2017   [Nov-09-17 12:04PM  Capital Cube]
▶ Is It Time To Sell BCE Inc (TSX:BCE)?   [Nov-03-17 05:33PM  Simply Wall St.]
▶ BCE tops 3Q profit forecasts   [10:07AM  Associated Press]
▶ BCE reports third quarter 2017 results   [07:00AM  PR Newswire]
▶ BCE, Inc. to Host Earnings Call   [06:10AM  ACCESSWIRE]
Financial statements of BCE
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